The Trump White House says the United States is losing an estimated $19 billion to $26 billion in revenue each year because some countries reroute exports through third countries to avoid U.S. tariffs. The claim appears in a new White House report discussed by senior officials.
Several outlets describe how the report focuses on transshipping—shipping goods to another country for packaging or limited processing before they re-enter the U.S. market. PBS NewsHour notes examples tied to China’s response to new tariffs in 2018, including routing goods through places such as Mexico and Malaysia.
Other outlets add further specifics from the White House, including statements by trade adviser Peter Navarro that China is sending exports through more than 40 countries. While the outlets differ in the examples and emphasis, they converge on the core estimate and the argument that tariff avoidance occurs through third-country routes rather than direct trade.
