The United States (US) has accused India and more than 40 other countries of helping Chinese exporters bypass American tariffs by routing goods through third countries. 

The allegations have raised fresh concerns over India’s trade relationship with the US and could add pressure to ongoing discussions on tariffs and market access. The allegations were detailed in a White House report titled “The Great Transshipment Scam”, prepared by US trade adviser Peter Navarro. 

The report claims that Chinese goods are being sent through other countries before reaching the US, allowing exporters to disguise their actual country of origin and avoid higher duties.

According to the report, the value of goods involved in such transshipment could range from $40 billion to $303 billion annually, depending on the methodology used. The US estimates that the practice could be costing its government $19 billion to $26 billion in tariff revenue every year.

India has been placed among the countries identified as being at risk of serving as a transshipment hub. The list also includes major economies such as Canada, Mexico, Japan, South Korea and members of the European Union. Being named does not by itself establish that Indian companies are illegally evading US tariffs.

The US is now planning to use artificial intelligence to identify suspicious shipments. The system, reportedly called “Detective Border”, will analyse trade and shipment data to identify inconsistencies in product origins, routes and other information.

For India, the development comes at a sensitive time as New Delhi and Washington continue to manage trade differences. Increased scrutiny of Indian exports could lead to stricter checks, higher compliance requirements and potential penalties for companies if US authorities identify violations.

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