WASHINGTON (Diya TV) — The United States has accused more than 40 countries, including India, of helping China bypass steep U.S. tariffs. The accusation centers on a global trade network that allegedly reroutes Chinese goods through third countries before they reach American markets.
The claim comes as the Trump administration plans to use artificial intelligence to identify suspicious shipments. The new system could help U.S. officials track goods, study shipping routes, and take action against companies involved in tariff evasion.
The Indian government has not yet responded to the U.S. accusation.
The report, titled “The Great Transshipment Scam,” came from Peter Navarro, President Donald Trump’s top trade adviser. Navarro said the practice became more common after 2018. That year, the Trump administration imposed Section 301 tariffs on Chinese goods over trade practices it considered unfair.
According to the report, companies may send Chinese-made products through other countries before exporting them to the United States. This process can make the goods appear to come from another country. As a result, importers may avoid some of the tariffs that apply to Chinese products.
Navarro’s report estimates that goods worth between $40 billion and $303 billion may move through third countries each year. The wide range reflects different methods for calculating the value of the suspected trade.
The report names several major U.S. trading partners as part of what Navarro calls China’s “Shadow Transshipment Network.” The list includes Mexico, Canada, the European Union, India, Japan and South Korea.
However, appearing on the list does not by itself mean that every company or shipment from these countries breaks U.S. trade rules. Legitimate trade also moves through countries that have strong manufacturing and supply networks.
The United States now plans to introduce an artificial intelligence tool called “Detective Border.” The technology could examine shipping records, routing patterns, product classifications, ownership links, and production capacity. It could also use anomaly detection and computer vision to find unusual trade patterns.
The issue has wider implications for global trade. U.S. tariffs on Chinese products have pushed companies to rethink their supply chains. Some businesses have moved production to other countries to reduce costs and limit their exposure to tariffs.
At the same time, those changes have raised concerns about companies using third countries only as a route for Chinese goods. U.S. officials say such practices can weaken the effect of American trade policy.
