Published: · Region: Global · Category: markets

White House Targets ‘Tariff Evasion Network’ Helping China Reroute $60 Billion in Trade

Washington says more than 40 countries — including close allies like Canada, Japan, Mexico and the EU — are being used to reroute and relabel Chinese exports, costing the U.S. tens of billions of dollars in lost tariffs. The White House is responding with tougher rules-of-origin tests and an AI-driven customs system, escalating an already fraught economic confrontation with Beijing and its trading partners.

The White House has opened a new front in its economic clash with China, accusing more than 40 countries — including some of America’s closest allies — of serving as waystations in a global network that helps Chinese firms dodge U.S. tariffs. Officials say the rerouting and relabelling of Chinese goods may cover around $60 billion in trade and deprive Washington of tens of billions in tariff revenue. In a briefing disclosed on 15 August, U.S. officials said customs data and investigative work point to a pattern in which Chinese-origin products are shipped to jurisdictions such as Canada, Japan, Mexico and members of the European Union, where they are lightly…

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