The White House says it is losing an estimated $19 billion to $26 billion per year in potential U.S. tariff revenue as countries reroute exports through third nations to avoid duties. The claim is set out in a report discussed by trade adviser Peter Navarro, who links the losses to “transshipment,” where goods are shipped to other countries for packaging or limited processing before reaching the United States.
Quartz and the Korea Times both describe the report’s focus on China’s response to tariffs introduced in 2018. They say Chinese exports have been routed through multiple countries—Navarro cites more than 40—creating the appearance that imports from China are falling while China continues to expand manufacturing activity that could compete with U.S. producers. The Korea Times also notes that the report highlights rerouting examples involving countries ranging from Mexico to Malaysia for packaging and limited assembly.
While the outlets agree on the estimate and the general mechanism, they vary slightly in emphasis: Quartz foregrounds the figure of up to $26 billion and the scale of rerouting, while the Korea Times adds broader context on how the practice may affect U.S. industries and describes the administration’s framing.
