White House Report Alleges Chinese Goods Evade Tariffs Via Transshipment

The report divides countries linked to potential illegal transshipment into three categories based on economic size and integration with China's supply chain. South Korea is in the first category, along with Canada, the European Union, India, Israel, Japan, Mexico, and Taiwan. These are described as countries and trading blocs with large absolute volumes of China-linked goods, diversified industrial bases, and developed export platforms to the U.S., where illegal transshipment risks may be mixed into broad legitimate trade flows. The report notes that actual tariff differences inevitably vary depending on the transshipment route.