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US Finds 'Transshipment Scam' Costing Up to $26 Billion, Blames China

US Finds 'Transshipment Scam' Costing Up to $26 Billion, Blames China

US Finds 'Transshipment Scam' Costing Up to $26 Billion, Blames China
There are concerns that foreign exporters are sending goods through other countries to avoid US tariffs.
China, Panama, Mexico, and Colombia are some of the countries that might be doing this.
Transshipment means sending goods through another country before they come to the US.
The US removed over 20 products linked to China from its marketplace.
Peter Navarro, a trade advisor, spoke to the press before going to a federal correctional institution.
The White House made a 25-page report called 'The Great Transshipment Scam'.
The report says China has a long history of transshipment.
After the US put tariffs on China, the trade deficit went down in 2019 and 2020.
But Chinese exporters started sending goods through other countries to avoid tariffs.
The report explains how goods are sent through other countries to avoid tariffs.
The US and China have had trade issues before.
The transshipment practice has created a global network of production hubs and free-trade zones.
The US loses between $19 billion and $26 billion in revenue each year because of transshipment.
The Trump administration is trying to stop transshipment.
Peter Navarro said communist China is 'laundering' its exports through transshipment.
The US and China have had tensions over trade and other issues.
The US Customs and Border Protection is working to stop transshipment.
Navarro said other countries like India might also use transshipment to avoid tariffs.
The value of goods sent through transshipment is estimated to be between $34.2 billion and $303 billion each year.
The US is using artificial intelligence to detect transshipment and will punish importers who falsify a product's origin.
The report came out before Chinese President Xi Jinping's planned visit to Washington.
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Fox News Digital asked the White House for comment.
Emma Bussey is a breaking news writer for Fox News Digital. She used to work at The Telegraph.