Chicago – August 14, 2026
The Trump administration says the United States is losing between $19 billion and $26 billion in annual tariff revenue because companies are routing goods through third countries to avoid U.S. import duties.
A new White House report focuses on âtransshipping,â in which goods, particularly from China, are sent through countries such as Mexico and Malaysia for packaging or limited assembly before entering the United States. Officials say the practice can disguise the original country of production and reduce tariff payments.
White House trade adviser Peter Navarro accused more than 40 countries of helping facilitate the practice and warned that other nations could adopt similar methods. The report estimates that between $34.2 billion and $303 billion worth of goods may be transshipped annually, using $75 billion as its central estimate.
U.S. Customs and Border Protection has begun testing artificial intelligence to identify suspicious shipments and potentially recover unpaid tariffs retroactively.
