White House releases report alleging “transshipment” through third countries to evade tariffs, citing potential $26B in added U.S. costs

The White House on Aug. 13 released a report describing what it calls a “transshipment scam,” alleging that some importers route goods through third countries to avoid or reduce tariff exposure, and estimating that the practice could be costing the United States as much as $26 billion. The report frames the issue as a trade-enforcement problem tied to tariff administration and supply-chain diversion.

In coverage of the White House release, Fox News reported that the administration’s assessment identifies “over 40 countries” it considers to have elevated transshipment risk, describing a pattern in which goods are moved through additional jurisdictions before reaching U.S. buyers. The report also links the tactic to China-linked trade flows, according to the outlet.

The White House did not present the allegation as a court finding in the cited release, instead presenting the material as an administrative risk assessment tied to trade policy and enforcement priorities. The report’s focus, as described in the coverage, is on tariff avoidance through intermediary routing rather than on specific, adjudicated cases or individual company penalties.

The practical impact described in the White House release and related reporting centers on higher U.S. costs for tariffed goods when diversion occurs. The stated objective, according to the administration’s framing in the release, is to strengthen the effectiveness of tariffs by improving identification of shipments that may be connected to tariff circumvention.

The report’s country-by-country approach, including its list of jurisdictions with elevated risk, suggests the administration is directing attention toward customs and trade monitoring, a process that can lead to heightened scrutiny of certain import lanes, documentation, and valuation practices. The U.S. government’s next steps would depend on whether Customs and Border Protection and other trade authorities decide to target specific categories, carriers, brokers, or declarants for additional review.

The White House release also arrives amid broader Trump administration tariff actions on other product categories in 2026, including proclamations and fact sheets tied to national security and supply-chain concerns. While those actions are separate from the transshipment report, together they reflect a continued emphasis on trade measures and enforcement implementation.

Any further enforcement would still require the underlying legal authority and procedural steps governing U.S. customs determinations, including how shipment-specific information is evaluated and how importers can challenge administrative findings. Without an accompanying Federal Register notice tied directly to the transshipment report, the release itself functions primarily as a policy and enforcement rationale rather than a standalone change to tariffs or statutory obligations.