A White House report reveals that Chinese exporters route approximately $75 billion in goods annually through more than 40 intermediary countries to avoid US tariffs, causing an estimated loss of $19 billion to $26 billion in annual tariff revenue. This transshipment practice, which involves relabeling or repackaging Chinese products in a third country before entering the United States, is estimated to have displaced approximately 450,000 American jobs and reduced US GDP by $113 billion to $150 billion per year. The most affected sectors are electrical equipment and plastics, while Panama, Mexico, and Colombia rank among the highest-risk countries. The administration issued Executive Order 14411 in June 2026 to strengthen enforcement against this customs fraud.
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