The White House revealed that the United States is losing between $19 billion and $26 billion in annual tax revenue due to transshipment, a practice of routing goods through third countries to evade tariffs. A $112 billion gap was found between what China reported shipping to the U.S. and what the U.S. reported receiving, with China being singled out for processing exports through more than 40 other countries. The tariffs imposed by the Trump administration, including the 145% duties on China during « Liberation Day », have created massive incentives for fraud, and Goldman Sachs estimates the U.S. lost between $110 billion and $130 billion in revenue during Trump’s first term. The U.S. administration is now deploying tools to combat this evasion, including artificial intelligence to analyze shipping data and an executive order restricting foreign entities acting as importers of record.
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