The assessment was published in a report titled “The Great Transshipment Scam”, released by the White House’s Office of Trade and Manufacturing Policy on August 13. The report examines what it describes as the growing practice of routing goods through third countries to evade U.S. tariffs and other trade restrictions.
According to the report, exporters in countries subject to higher U.S. tariffs may exploit differences in tariff rates by routing goods through countries facing lower duties before shipping them to the U.S. market. The practice can involve relabeling, repackaging, reinvoicing, limited processing, false declarations of origin and other measures designed to secure a tariff treatment that would not apply if the goods' true economic origin were disclosed.
The White House describes China as the most prominent historical example of such practices, arguing that Chinese exporters increasingly began routing goods through third countries after the United States imposed tariffs on Chinese imports in 2018. The report says other countries are now adopting what it calls the “Chinese model” to avoid U.S. tariffs.
The document groups countries into three categories based on the nature of the perceived risk. The first includes major U.S. trading partners with diversified manufacturing sectors and large export volumes, such as Canada, the European Union, India, Israel, Japan, Mexico, South Korea and Taiwan.
The second group comprises countries with significant transshipment activity and deeper integration into Chinese supply chains, including Brazil, Indonesia, Malaysia, Thailand, Turkey and Vietnam.
Uzbekistan was placed in the third group, which consists of 24 smaller economies with lower trade volumes but characteristics that the White House says could make them useful transshipment hubs, including free zones and weaker customs controls. Other countries in this category include Argentina, Azerbaijan, Costa Rica, Georgia, Kazakhstan, Kenya, Oman, the United Arab Emirates and Switzerland.
The report says Chinese-linked exporters could use such jurisdictions for limited manufacturing activity and to establish logistics routes. As local export and transport networks become increasingly dependent on Chinese resources, logistics and capital, the report argues, Beijing could gain additional commercial and geopolitical influence.
According to the White House, transshipment could also deepen commercial dependence through the Belt and Road Initiative. Ports, railway corridors, free zones, industrial parks, customs warehouses and logistics platforms can support legitimate trade but may also be used to reroute Chinese-linked cargo, the report says.
