A new 25-page report from the Trump administration claims that Chinese exporters have engaged in a widespread scheme to avoid US tariffs. The document, which labels the practice the “Great Transshipment Scam,” alleges that firms have diverted products through more than 40 different countries since the onset of the US-China trade war in 2018.

According to the report, the strategy involves moving goods to lower-tariff jurisdictions where they undergo minimal processing, such as simple assembly or relabeling, before being shipped to the United States under the guise of being products of the intermediary country. The administration argues this process is an illegal attempt to undermine US trade policy and avoid the financial impact of tariffs. While the report provides specific allegations regarding the mechanics of these shipments, it does not detail the specific companies involved or the total estimated financial loss to the US economy. The Chinese government has not yet issued a formal response to these specific allegations, though Beijing has historically denied claims of systemic trade manipulation during the ongoing trade dispute.