The Trump administration accused over 40 countries of facilitating Chinese tariff evasion through a transshipment network estimated at $75 billion between February 2025 and February 2026, resulting in lost US tariff revenue of $19 to $34 billion. The White House report, titled « The Great Transshipment Scam, » names Mexico, Canada, EU member states, India, Japan, and South Korea among the accused nations. These countries allegedly have a direct financial incentive to look the other way, as transshipment generates fees, local jobs, and tax revenue. The White House plans to deploy an AI-powered « detective border » system to flag suspicious import patterns in real time. Diplomatic fallout with allied nations publicly named in the report could be significant.
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