White House says China is dodging billions in U.S. tariffs by rerouting goods through 40 countries
China and other nations route exports through third countries to dodge U.S. tariffs, the administration claims in a new report.
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What to know
- The White House estimates countries route $19B–$26B in goods annually through third nations to avoid U.S. tariffs, with China using 40+ intermediary countries since 2018.
- The report proposes using AI and retroactive tariffs (up to one year back) to detect and penalize transshipment, targeting allies and rivals alike.
- The framing is contested on social media: critics argue tariffs are taxes on American consumers, not foreign exporters, reframing the administration's 'revenue loss' claim.
- The report timing precedes a planned September visit by Chinese leader Xi Jinping, even as Trump administration officials describe the U.S.–China relationship in diplomatic terms.
How it unfolded
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Critics on social media argue the framing misrepresents who bears the cost of tariffs, noting that American consumers—not foreign exporters—pay import taxes.
“Americans pay tariffs on imported goods, not the foreign exporters. So what the White House is saying here is that they want to raise taxes on Americans by $19 billion to $26 billion”
aaronrosspowell.com · Bluesky ↗ -
The report specifically highlights China's practice since 2018 of sending goods to Mexico, Malaysia, and other nations for packaging and limited assembly to evade tariffs while maintaining manufacturing growth.
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White House trade adviser Peter Navarro told reporters China is laundering exports through transshipment and announced that U.S. Customs will use AI to detect the practice, with retroactive tariffs applied up to one year back.
“For years, the great transshipment scam has let communist China launder its exports”
Peter Navarro · Bluesky ↗ -
The White House released a report estimating $19 billion to $26 billion in annual tax revenue losses from countries routing exports through third nations to avoid U.S. tariffs.
What people are saying verbatim
“For years, the great transshipment scam has let communist China launder its exports”
Peter Navarro, White House trade adviser · AP / Winnipeg Free Press ↗ · Aug 12
“Americans pay tariffs on imported goods, not the foreign exporters. So what the White House is saying here is that they want to raise taxes on Americans by $19 billion to $26 billion”
aaronrosspowell.com, Bluesky user · Bluesky ↗ · Aug 12
“China responded to new tariffs in 2018 by sending their goods to other nations ranging from Mexico to Malaysia for packaging and limited assembly — a practice known as transshipping.”
Associated Press, News outlet reporting White House findings · AP / PBS NewsHour ↗ · Aug 12
The conversation unedited, verbatim
8 comments claimed on the threads · 5 collected here from 3 sites · 4 voices below over time ↑
Where people stand verbatim
The conversation focuses on the economic mechanics and fairness of tariffs. A smaller but pointed faction on social media challenges the White House's framing of the 'revenue loss,' arguing that American consumers—not foreign governments—bear the cost of import taxes.
Tariffs are taxes on Americans, not foreign countries; the White House is misrepresenting who loses money from tariff avoidance.
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“Americans pay tariffs on imported goods, not the foreign exporters. So what the White House is saying here is that they want to raise taxes on Americans by $19 billion to $26 billion, but foreign countries are finding ways to let American…”
aaronrosspowell.com · Bluesky ↗
- Today
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White House claims billions lost each year to tariff evasion through third countries https://www. euronews.com/2026/08/14/white- house-says-its-losing-19b-26b-a-year-in-revenue-as-countries-dodge-tariffs?utm_source=flipboard&utm_medium=activitypub Posted into Economy @ economy-euronews
- Yesterday
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My point is that tariffs impact b2b things that effects suppliy chains. countries dodging tariffs is a bonkers idea. That would be like the state subsidising all it’s businesses to open manufacturing plants somewhere else so they get lesser tariffs. A business might do that. But generally purchasing behaviour has a greater impact on supply chains…
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Americans pay tariffs on imported goods, not the foreign exporters. So what the White House is saying here is that they want to raise taxes on Americans by $19 billion to $26 billion, but foreign countries are finding ways to let American taxpayers instead keep that money.
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WASHINGTON (AP) — The Trump White House said in a new report on Thursday that countries are routing their exports through third countries to avoid U.S. tariffs, estimating that there are tax revenue losses of $19 billion to $26 billion annually.