US accuses Chinese exporters of masterminding ‘Great Transshipment Scam’

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US-China trade warUSUS accuses Chinese exporters of masterminding ‘Great Transshipment Scam’White House alleges that companies are systematically routing trade through third-party nations to evade US tariffs4-MIN READ4-MIN19 Nayan Sethin WashingtonPublished: 6:45pm, 13 Aug 2026Updated: 7:15am, 14 Aug 2026The Trump administration on Thursday released a sharply worded report accusing Chinese exporters of orchestrating a system of “illegal transshipment” through more than 40 third countries to dodge US tariffs, branding the practice “The Great Transshipment Scam”.The 25-page document claims Chinese firms have systematically diverted goods through lower-tariff jurisdictions since the US kicked off its trade war with China in 2018.It alleges that exporters use limited assembly, relabelling, repackaging, re-invoicing and false country-of-origin declarations to disguise Chinese-origin products and secure more favourable tariff treatment on entry into the US.The White House report says that Chinese exporters have “increasingly routed goods through third countries … where limited assembly, finishing, repackaging, relabelling or documentation changes could create the appearance of a different national origin.” 01:16US slaps new tariffs ranging from 10-12.5% on 60 economies“For years the great transshipment scam has led Communist China to launder its exports through more than 40 countries, rob our treasury of tens of billions of dollars, and steal the paychecks of American workers,” said Peter Navarro, the White House senior counsellor for Trade and Manufacturing.

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