White House says transshipment is used to dodge China export tariffs

The White House said countries are routing exports through third markets to avoid US tariffs, with estimated revenue losses of $19 billion to $26 billion a year. The report highlights a pattern that grew after 2018: Chinese goods moving via Mexico, Malaysia and other hubs for packaging or limited assembly so that import statistics show a drop from China while manufacturing capacity stays offshore. Officials warned that similar transshipment could appear in other origins, including India, and said new trade frameworks will include penalty language. For factories and importers this is a documentation story as much as a freight story: certificates of origin, substantial transformation tests and packing lists will face tighter scrutiny. Buyers should confirm origin claims before quoting landed cost.