Overview
- The White House released a report Thursday, Aug. 13, 2026, alleging Chinese exporters use a global network that routes goods through more than 40 countries to hide origin and evade U.S. tariffs.
- The administration cited a central estimate of roughly $75 billion in transshipped goods between February 2025 and February 2026 and said that cost the U.S. Treasury an estimated $19 billion to $34 billion in lost duties.
- Officials are piloting an AI-driven ‘‘detective border’’ to cross-check shipment data, routing histories, ownership links and port imaging to flag high-risk consignments for U.S. Customs and Border Protection.
- The report places major trading partners including the EU, Canada, Mexico, India, Japan and South Korea in a top risk tier, a move that officials say will shape trade clauses and is already creating diplomatic friction.
- Administration proposals include an executive order to expand CBP powers, contract clauses to block transshipment, and retroactive tariff collection on an importer’s shipments for up to about a year, set against a backdrop of Section 301 tariffs and earlier enforcement actions.