US names India a part of ‘shadow transhipment network’ helping China evade Trump tariffs
The White House report calls for firm action against countries that enable the rerouting of tariffed goods to evade US law including immediate interdiction, penalty tariffs, sanctions, and potential loss of market access.
The report traces the origins of the problem to 2018, when the Trump administration imposed Section 301 tariffs on select Chinese goods to remedy America’s growing trade deficit with China.
A White House report has described India as a major part of a “shadow transhipment network” that allowed Chinese goods facing high US tariffs to enter the American market by re-routing them through third countries facing lower tariffs.
The bill permits the executive to act against China, India, Slovakia, Hungary and Azerbaijan. Its sponsors said the rate should be pitched high enough to deter Chinese and Indian buying.
India was slapped with a 25% additional levy in August last year, which has since been removed after trade negotiations. India and the US have been attempting to seal a trade deal.
One estimate cites American commerce department data to assert that “approximately $67 billion in US-bound goods were transshipped from China through the top hubs Mexico, India, and Vietnam in 2025, producing an estimated $28 billion in lost tariff Revenue.”
The report says that increased economic pressure on US manufacturers from transshipped Chinese goods has led to serious economic consequences for America.
Under a central case of $75 billion in annual illegal transhipment, the report estimates approximately 450,000 jobs displaced; $113 billion to $150 billion in reduced annual gross domestic product; and $19 billion to $26 billion in associated federal revenue losses.
Peter Navarro also explicitly named India during a briefing, warning that as the US imposes higher tariffs, it will deter countries like India and Vietnam from attempting transhipment.
Source: Hindustan Times
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