The United States has leveled accusations against 38 nations and the European Union, alleging their involvement in a “shadow transshipment network” that purportedly enables Chinese goods, which are subject to hefty US tariffs, to make their way into the US market via intermediary countries. This development follows a report titled “The Great Transshipment Scam,” which suggests that such potentially illicit transshipment activities could be valued at approximately $60 billion, leading to significant losses in US tariff revenue.
The report identifies countries and territories such as India, Canada, the European Union, Israel, Japan, Mexico, South Korea, Taiwan, Brazil, and several others as being part of this alleged network. It highlights specific transshipment routes, including the Pune-Gujarat-Chennai corridor in India, where Chinese goods, like electric pumps and compressors, are said to benefit local businesses while simultaneously heightening competitive pressures on American manufacturers.
In 2025, an estimated $67 billion worth of goods destined for the US reportedly passed through major transshipment hubs in nations like Mexico, India, and Vietnam. This activity is believed to have resulted in an estimated $28 billion loss in US tariff revenue, according to the report. The findings place a spotlight on how these practices may undermine US economic interests by circumventing tariffs intended to protect domestic industries.
In response to these allegations, the US is contemplating a series of countermeasures. These would potentially include the imposition of stricter inspections and interdictions, the application of additional tariffs, and the enactment of sanctions. Furthermore, the US may consider restricting market access for countries perceived as facilitating tariff evasion, aiming to safeguard its economic interests and uphold its tariff regulations.