US names India a part of ‘shadow transhipment network’ helping China evade Trump tariffs

A recent White House report has designated India as a significant component of a "shadow transhipment network" facilitating the evasion of high US tariffs on Chinese goods. The report, titled "The Great Transhipment Scam," alleges that Chinese exporters are rerouting products through third countries to circumvent the Section 301 tariffs imposed by the Trump administration in 2018.

These third countries, including India, engage in activities such as limited assembly, repackaging, or documentation changes to create the appearance of a different national origin for the goods. The report estimates that approximately $67 billion in U.S.-bound goods were transshipped from China through major hubs like Mexico, India, and Vietnam in 2025, resulting in an estimated $28 billion in lost tariff revenue for the United States.

India, alongside other major US trading partners like Canada, Japan, the European Union, Israel, and Mexico, is categorized in Tier 1 of the report's assessment, indicating a substantial role in enabling this network. The White House argues that this practice has severe economic consequences for the US, potentially displacing around 450,000 jobs and reducing annual gross domestic product by $113 billion to $150 billion, alongside federal revenue losses.

The report specifically points to the Pune–Gujarat–Chennai corridor in India as benefiting economically from the transshipment of goods like electric pumps and compressors, at the expense of American manufacturers in states like Ohio. The White House is calling for decisive action against countries that facilitate the rerouting of tariffed goods to circumvent US trade laws.