Business
White House Targets 40+ Countries Over China Tariff Evasion Scam
The White House has accused more than 40 countries, including Canada, Mexico, Japan and EU member states, of helping China evade US tariffs by rerouting exports through lower‑tariff jurisdictions — a practice it labels “The Great Transshipment Scam” . The report estimates that such transshipment covers about $60bn in trade, with other US and private analyses placing the range between $40bn and $303bn .
Peter Navarro, head of the White House trade office, said China has developed “extremely sophisticated” methods to bypass duties since tariffs were first imposed in 2018, and that recent tariff differentials have encouraged exporters to continue rerouting goods . He argued the practice deprives the US Treasury of tens of billions and undermines American workers .
US customs authorities are deploying an AI‑powered system, “Detective Border,” to better detect mislabelled imports and enforce tariff rules, a move the administration says could boost revenue and create jobs . Washington is also adding anti‑transshipment provisions to new trade agreements and working to tighten rules of origin standards.
The White House Office of Trade and Manufacturing Policy has published a report accusing more than 40 countries, including Thailand, of facilitating a “global Shadow Transshipment Network” that allows Chinese exporters to dodge US tariffs. The report, titled “The Great Transshipment Scam” and released on August 13, puts Thailand in the same tier as Brazil, Indonesia, Malaysia, Türkiye and Vietnam, and warns that goods found to have been illegally rerouted through these economies could face an additional 40 percent duty.
Three tiers, one accusation
The report divides the 40-plus named economies into three tiers based on scale and depth of integration with Chinese supply chains. Tier 1 covers major US-bound export platforms where the White House says transshipment risk sits inside broad, otherwise legitimate trade flows: Canada, the European Union, India, Israel, Japan and Taiwan. Tier 2, where Thailand sits alongside Brazil, Indonesia, Malaysia, Türkiye and Vietnam, is described as economies with significant transshipment volumes and deeper integration into China-linked production, sourcing and logistics networks. Tier 3 groups smaller, “opportunistic” economies such as Singapore, Cambodia, Laos, Myanmar and the Philippines, which the report says offer specific advantages, including low-cost labour, free zones and bonded warehousing, that make them attractive for rerouting even if current volumes are lower.
Being named does not, on its own, amount to a finding of wrongdoing against every exporter in a listed country. The report itself acknowledges that a shift in trade patterns is not proof of illegal transshipment by itself.
How the scheme is said to work
According to the White House, Chinese-made goods are relabeled, repackaged, reinvoiced or given minor processing in a third country before being shipped to the United States under an altered country of origin, allowing them to clear customs at a lower tariff rate than would apply to goods declared as Chinese. White House trade adviser Peter Navarro offered a concrete illustration: Chinese components shipped to a country such as Vietnam, assembled into a recliner, then declared as Vietnamese-made on export to the US.
The administration puts the annual cost of the practice at between $19 billion and $26 billion in lost federal tariff revenue, alongside estimates of $113 billion to $150 billion in reduced US GDP and roughly 450,000 American jobs. A separate Commerce Department estimate cited in the report put transshipment through Mexico, India and Vietnam alone at about $67 billion in goods last year, equivalent to roughly $28 billion in foregone tariffs.
To catch it, the administration says it is developing an AI-enabled system, dubbed “Detective Border,” that would let Customs and Border Protection cross-reference shipping routes, product data and ownership records to flag suspicious shipments before they enter the country.
Where this lands for Thailand
Thailand’s Tier 2 placement comes as the kingdom is already running its own, separately motivated crackdown on foreign nominee arrangements. The Department of Business Development’s enforcement drive under Order No. 2/2026 has targeted companies using Thai proxies to work around the Foreign Business Act, with billions of baht in assets seized in cases involving Chinese-linked firms.
The transshipment report adds a second, US-driven layer of scrutiny on top of that domestic one, arriving just as Thailand is courting a fresh wave of Chinese manufacturing investment rather than trying to slow it down. Chinese firms accounted for the largest number of newly approved businesses in Thailand in the first half of 2026, and the government has fast-tracked Board of Investment and Eastern Economic Corridor approvals for a new humanoid-robot component cluster built by five Chinese companies. That combination, an EEC actively recruiting Chinese manufacturers on one hand and a Washington report questioning the origin of goods moving through the same corridor on the other, is likely to sharpen the compliance burden facing exporters trying to demonstrate genuine Thai value-add rather than pass-through assembly.
Washington has already set a template for how Tier 2 exposure can translate into policy. A 2025 framework agreement with Vietnam imposed a 40 percent tariff specifically on goods judged to have been transshipped, twice the rate applied to ordinary Vietnamese-origin exports. Thai exporters and their US-based buyers now face the prospect of a similar carve-out, with customs documentation and supply-chain traceability becoming a live commercial issue rather than a paperwork formality.
Beijing’s response, and what happens next
A representative for the Chinese Embassy in Washington told reporters China would act to safeguard its rights and interests, and accused the US of economic coercion that disrupts global industrial and supply chains. The report does not announce immediate new tariffs or country-specific action; it functions as a policy document and enforcement signal rather than a rule change. “The message to the world is simple,” the report states. “The age of untraceable illegal transshipment is over.”
The report lands about a month ahead of an expected summit between President Donald Trump and Chinese President Xi Jinping, adding trade-enforcement friction to a bilateral relationship already under strain over tariffs and export controls.
Other People are Reading
Earnings call transcript: GPT Group posts solid H1 2026 growth, shares flat
New Zealand’s Synlait denies takeover talks with Fonterra and a2 Milk
Business
BK Technologies Corporation 2026 Q2 – Results – Earnings Call Presentation (NYSE:BKTI) 2026-08-16
Seeking Alpha’s transcripts team is responsible for the development of all of our transcript-related projects. We currently publish thousands of quarterly earnings calls per quarter on our site and are continuing to grow and expand our coverage. The purpose of this profile is to allow us to share with our readers new transcript-related developments. Thanks, SA Transcripts Team
Yes. Corporate subscriptions are available for teams and organisations, with discounted rates as user numbers increase. Pricing starts from $1,625 + GST per user.
Get in touch
to discuss the right option for your organisation.
Business News subscriptions are used by executives, investors, consultants and professionals who need to stay informed and make better decisions about the WA market. When you subscribe you’ll get
- Unlimited access to WA’s most trusted business journalism
- Data & Insights — detailed profiles of WA companies, people, projects and deals
- MyBN — a personalised feed based on the companies, people and sectors you follow
- Special publications and industry reports
- Daily and weekly email newsletters
Data & Insights is a research tool built specifically for the WA market. It draws on more than 30 years of Business News reporting, updated regularly to reflect what’s happening now. Use it to:
- Look up detailed profiles of WA companies, including financials, directors and ownership
- Find decision-makers and track their career movements
- Research live and completed projects across WA industries
- Monitor deals, appointments and market activity
- Access industry rankings and league tables
Data & Insights is updated daily by our dedicated research team, which uses the latest announcements, ASX filings and editorial coverage to keep our person, company, list and project records up to date.
Business News welcome all opportunities to make our dataset accurate, complete and current, so if you have an update request, please email the team at
general@businessnews.com.au, and we’d be happy to assist.
MyBN
is part of every subscription. It’s your personalised view of Business News. You can follow the companies, people, sectors and projects that matter to you, and get a news feed and alerts tailored to your interests. You can save articles to read later and retain only what you need.
Only subscribers have full access to all content on the Business News website.
If staying informed about the WA economy is part of your job, and/or you’re looking for networking opportunities in WA, Business News is built for you.
Business News subscribers are:
- Executives and directors tracking competitors, clients and market movements
- Investors and advisers researching companies, deals and industry trends
- Consultants and professionals staying across sectors relevant to their clients
- Business owners looking for leads, context and market intelligence
Most Business News publications cover national or global markets. Business News is focused entirely on Western Australia, which means the journalism, the data and the intelligence are all built around WA companies, people and projects — not adapted from a national feed. Data & Insights, included with every subscription, combines more than 30 years of WA-specific editorial research with live business data. There’s no comparable product for the WA market.
The Morning Digest Email provides a comprehensive wrap of the major headlines, relevant to WA business, and includes with a snapshot of the overnight news covering oil, gold and ASX-listed companies.
The Afternoon Wrap Email focuses on the news covered by our team of journalists during the course of the working day, including exclusive stories and analysis, all of which relates to WA business and the local economy.
The BN Weekender Email contains a wrap of the Business News from the week that was, highlighting the top stories in each area of WA business.
Sign up for free.
We’re happy to help.
Get in touch
and our team will come back to you.
Seeking Alpha’s transcripts team is responsible for the development of all of our transcript-related projects. We currently publish thousands of quarterly earnings calls per quarter on our site and are continuing to grow and expand our coverage. The purpose of this profile is to allow us to share with our readers new transcript-related developments. Thanks, SA Transcripts Team
Business
Envipco Holding N.V. 2026 Q2 – Results – Earnings Call Presentation (OTCMKTS:ENVHF) 2026-08-16
Seeking Alpha’s transcripts team is responsible for the development of all of our transcript-related projects. We currently publish thousands of quarterly earnings calls per quarter on our site and are continuing to grow and expand our coverage. The purpose of this profile is to allow us to share with our readers new transcript-related developments. Thanks, SA Transcripts Team
Business
Korea Electric Power Corporation 2026 Q2 – Results – Earnings Call Presentation (NYSE:KEP) 2026-08-16
Seeking Alpha’s transcripts team is responsible for the development of all of our transcript-related projects. We currently publish thousands of quarterly earnings calls per quarter on our site and are continuing to grow and expand our coverage. The purpose of this profile is to allow us to share with our readers new transcript-related developments. Thanks, SA Transcripts Team
Yes. Corporate subscriptions are available for teams and organisations, with discounted rates as user numbers increase. Pricing starts from $1,625 + GST per user.
Get in touch
to discuss the right option for your organisation.
Business News subscriptions are used by executives, investors, consultants and professionals who need to stay informed and make better decisions about the WA market. When you subscribe you’ll get
- Unlimited access to WA’s most trusted business journalism
- Data & Insights — detailed profiles of WA companies, people, projects and deals
- MyBN — a personalised feed based on the companies, people and sectors you follow
- Special publications and industry reports
- Daily and weekly email newsletters
Data & Insights is a research tool built specifically for the WA market. It draws on more than 30 years of Business News reporting, updated regularly to reflect what’s happening now. Use it to:
- Look up detailed profiles of WA companies, including financials, directors and ownership
- Find decision-makers and track their career movements
- Research live and completed projects across WA industries
- Monitor deals, appointments and market activity
- Access industry rankings and league tables
Data & Insights is updated daily by our dedicated research team, which uses the latest announcements, ASX filings and editorial coverage to keep our person, company, list and project records up to date.
Business News welcome all opportunities to make our dataset accurate, complete and current, so if you have an update request, please email the team at
general@businessnews.com.au, and we’d be happy to assist.
MyBN
is part of every subscription. It’s your personalised view of Business News. You can follow the companies, people, sectors and projects that matter to you, and get a news feed and alerts tailored to your interests. You can save articles to read later and retain only what you need.
Only subscribers have full access to all content on the Business News website.
If staying informed about the WA economy is part of your job, and/or you’re looking for networking opportunities in WA, Business News is built for you.
Business News subscribers are:
- Executives and directors tracking competitors, clients and market movements
- Investors and advisers researching companies, deals and industry trends
- Consultants and professionals staying across sectors relevant to their clients
- Business owners looking for leads, context and market intelligence
Most Business News publications cover national or global markets. Business News is focused entirely on Western Australia, which means the journalism, the data and the intelligence are all built around WA companies, people and projects — not adapted from a national feed. Data & Insights, included with every subscription, combines more than 30 years of WA-specific editorial research with live business data. There’s no comparable product for the WA market.
The Morning Digest Email provides a comprehensive wrap of the major headlines, relevant to WA business, and includes with a snapshot of the overnight news covering oil, gold and ASX-listed companies.
The Afternoon Wrap Email focuses on the news covered by our team of journalists during the course of the working day, including exclusive stories and analysis, all of which relates to WA business and the local economy.
The BN Weekender Email contains a wrap of the Business News from the week that was, highlighting the top stories in each area of WA business.
Sign up for free.
We’re happy to help.
Get in touch
and our team will come back to you.
Business
Computershare Limited 2026 Q4 – Results – Earnings Call Presentation (OTCMKTS:CMSQY) 2026-08-16
Seeking Alpha’s transcripts team is responsible for the development of all of our transcript-related projects. We currently publish thousands of quarterly earnings calls per quarter on our site and are continuing to grow and expand our coverage. The purpose of this profile is to allow us to share with our readers new transcript-related developments. Thanks, SA Transcripts Team
Skye Bioscience, Inc. (SKYE) Skye Bioscience, Inc. – M&A Call – Slideshow
Kevin O’Connell Had to Pick Between Competitive and Rebuild
SafePal data breach impacts 39,798 customers, stolen info for sale
Games Inbox: Should Call Of Duty become free-to-play?
-
Fashion2 days agoWeekend Open Thread: Ann Taylor
-
NewsBeat5 days agoCommunication cards help banking customers access services or report scams
-
Business6 days agoOil Price Today (August 11): Crude oil rises to $88 after Trump’s compensation demand dents Hormuz opening. Here’s why
-
Crypto World6 days agoRevolut wins French banking licence, creates second EU banking hub
-
Crypto World6 days agoWhy Did Nvidia Stock Fall on Monday Despite a $500 Billion Wall Street AI Deal?
-
Sports3 days agoThis U.S. Amateur is a glimpse into golf’s future in more ways than you think
-
Sports2 days agoBirmingham 2026: Day 6 Timetable for Irish Athletes
-
NewsBeat2 days agoMyanmar says over 300,000 Rohingya refugees verified for repatriation as exodus enters ninth year
-
Politics2 days agoSEQ Code: The Three Letter Boarding Pass Code That Could Give You The Worst Seat
-
Crypto World6 days agoGrayscale quietly drops Cardano, Polkadot and Hedera ETF plans
-
Entertainment5 days agoKeke Palmer Subtly Hints At Sean Evans Drama With Cryptic Post
-
Fashion6 days agoCan You Wear Double Cloth Gauze Clothing To Your Office?
-
Entertainment6 days ago57 Years Later, the Best Sitcom Ever Made Still Deserves a Reboot
-
Fashion5 days agoClaire Life: Kicking Off MVAAFF With the C Suite Luncheon Featuring Phylicia Rashad, Letoya Luckett, and More!
-
Tech5 days agoZoom Screen-Sharing Bug Let People Fully Take Over Other Devices On A Call
-
Sports4 days agoDeQuan Jones in ‘high spirits’ after successful leg surgery
-
Crypto World6 days agoHormuz Nerves Cost Bitcoin $65,000 Mark Despite Solid Institutional Flows
-
Politics5 days agoIn the Chris Kaba case, the police watchdog capitulated to the mob
-
Crypto World6 days agoBitcoin's BIP Editors Remove Luke Dashjr Two Days After BIP-110 Fork Stalled
-
Fashion6 days agoHow to Mix Diamond Rings With Gold & Silver Jewelry
You must be logged in to post a comment Login