White House Reveals Up to $26 Billion Loss from International Tariff Evasion
A White House report released Thursday states that the United States loses between $19 billion and $26 billion annually due to multiple countries evading tariffs by routing goods through third‑party nations.
How the evasion works
The document highlights that since the 2018 tariff hike, China ships its products to countries such as Mexico and Malaysia for packaging and re‑export to the U.S., a practice known as “transshipment.” This creates the illusion of lower Chinese imports while allowing Beijing to expand its manufacturing base.
Impact on U.S. industry
White House trade adviser Peter Navarre told reporters that more than 40 nations are involved, warning that the scheme threatens American factories and jobs. Associated Press notes the practice could erode the competitiveness of the domestic sector.
Broader context
The figures emerge amid escalating trade tensions between Washington and Beijing since 2018, as the U.S. seeks to recoup lost revenues and boost local production.
The administration is urging stricter enforcement and new mechanisms to close loopholes exploited by foreign firms.
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