The United States has leveled accusations against 38 countries and the European Union, claiming they participate in a “shadow transshipment network.” This network allegedly facilitates the entry of Chinese goods, which are subject to high US tariffs, into the American market by routing them through third-party countries. According to a report titled “The Great Transshipment Scam,” this potentially illicit activity could amount to approximately $60 billion, causing significant losses in US tariff revenue.
The report names several countries and territories as part of this network, including India, Canada, Israel, Japan, Mexico, South Korea, Taiwan, Brazil, and many others across Europe, Asia, and the Americas. It estimates that in 2025, around $67 billion worth of goods destined for the US were allegedly rerouted from China through major hubs such as Mexico, India, and Vietnam, which may have led to a loss of about $28 billion in US tariff income.
Particularly highlighted in the report is the Pune-Gujarat-Chennai corridor in India. It suggests that this region benefits from Chinese shipments of products like electric pumps and compressors, which in turn increases competition pressures on US manufacturers. The document indicates that such transshipment practices bolster businesses along this corridor while undermining the competitive landscape for American companies.
In response to these findings, the US is considering several measures to combat this issue. Proposed actions include implementing stricter inspections and interdictions, imposing additional tariffs, enacting sanctions, and possibly restricting market access for nations that are found to be facilitating tariff evasion. These steps aim to curb the financial impact on US tariff revenue and protect domestic industries from unfair competition.