--- title: "U.S. alleges India aids China in tariff evasion via transhipment" url: https://projectchintan.com/article/us-alleges-india-transhipment-evasion-pvbd5 publisher: Project Chintan author: Project Chintan Newsroom section: Politics published: 2026-08-22T20:30:36.052Z modified: 2026-08-23T05:00:06.871Z language: en-IN --- # U.S. alleges India aids China in tariff evasion via transhipment The White House report accuses India of enabling China’s tariff evasion through transhipment, naming over 40 countries and highlighting India as a top enabler. It cites billions in lost tariff revenue and outlines a production belt example in Pune, Gujarat, and Chennai. ## Key takeaways - The White House released a report accusing India of enabling China’s tariff evasion through transhipment. - About 40 countries are named as having elevated transhipment risk, with India highlighted among top enablers. - The report estimates $67 billion in U.S.-bound goods transshipped through hubs in 2025, causing $28 billion in lost tariff revenue. ## What Happened The White House issued a report titled “The Great Transhipment Scam” accusing roughly 40 countries, including India, of helping China avoid U.S. tariffs through transhipment schemes. The document identifies India as among the top enablers of this practice and describes how goods from China are routed through other jurisdictions with marginal modifications to appear of a different origin and attract lower tariff treatment when re-exported to the United States. The report notes that a subset of these operations led to a measurable loss in U.S. tariff revenue and provides a quantified estimate for 2025. Among the specifics cited, the Office of Trade and Economic Analysis estimates about $67 billion worth of U.S.-bound goods were transshipped from China via hubs including Mexico, India, and Vietnam in 2025, resulting in roughly $28 billion in lost tariff revenue. A production belt linking Pune, Gujarat, and Chennai is mentioned as absorbing products from China, with potential downstream effects on industrial supply chains in U.S. cities such as Cincinnati, Dayton, and Columbus. The report also frames the broader context: since 2018, China’s exporters have increasingly used third countries to route goods to the U.S. to minimize tariff exposure, suggesting a shift from direct shipments to more circuitous routes that reduce the effective duties faced by Chinese products. ## Why It Matters The document frames the issue as a test of U.S. tariff policy’s effectiveness, noting that imports from China fell between 2017 and 2025 while total U.S. imports from all countries rose, implying that the policy redirected rather than reduced overall dependence on imports. It characterizes India’s role as part of a larger pattern of countries implicated in lowering U.S. tariff collections through transhipment, potentially undermining revenue objectives and the intended domestic economic effects of tariffs. ## Background The report situates the U.S.-China economic relationship as deeply intertwined and explains a historical arc of U.S. tariffs on Chinese goods under various justifications related to unfair trade and tech practices. It notes that China began facing tariff actions during the early years of the Trump administration, with later steps expanding into 2026. The narrative portrays the transhipment tactic as a way for Chinese goods to skirt those tariffs via intermediate hubs around the world. ## Key Facts - The White House released a report titled “The Great Transhipment Scam.” - Approximately 40 countries are named in the report as having “elevated illegal transhipment risk.” - India is identified among the top enablers of China’s tariff evasion. - Estimated $67 billion of U.S.-bound goods transshipped from China through top hubs in 2025. - Estimated $28 billion in lost tariff revenue due to these transhipment activities. - A production belt linking Pune–Gujarat–Chennai is cited as affecting U.S. supply chains in Cincinnati, Dayton, and Columbus. - U.S. total imports rose from $2.41 trillion in 2017 to $3.50 trillion in 2025; imports from China fell in that period. ## What Happens Next The material presents a critique of tariff policy effectiveness and flags ongoing concerns about revenue losses tied to transhipment practices. It does not specify further government actions beyond the publication of the report or any immediate policy changes tied to these allegations. --- Canonical: https://projectchintan.com/article/us-alleges-india-transhipment-evasion-pvbd5 Reported from: Multiple Sources