US accuses 9 Latin nations of aiding China tariffs
South China Morning Post
The White House has released a surprising report titled “The Great Transshipment Scam,” accusing more than 40 nations of systematically helping Chinese exporters evade stringent US taxes. In order to take advantage of cheaper import tax rates, items are purposefully routed through intermediary countries and falsely labelled with fictitious origins. Trade evasion is estimated to be worth $60 billion, with the possibility of reaching $303 billion.
Latin America is the main emphasis among the economies that are extensively involved; Mexico, Panama, Colombia, Brazil, Argentina, Chile, Peru, Costa Rica, and the Dominican Republic have all been specifically designated as high-risk hubs. Several target nations have implemented severe countermeasures in response to these intricate supply chain strategies and growing diplomatic pressure. These include Panama cancelling significant operating concessions owned by a Hong Kong-based company, Colombia imposing maximum metal taxes specifically aimed at China, and Mexico placing high taxes on Chinese cars.
China has expanded tax evasion into an industrial-level approach since 2018, according to White House trade advisor Peter Navarro. He warned that as tighter US economic laws progressively connect global industrial supply chains with China’s vast trade infrastructure, this illegal transshipment technique might quickly expand to other heavily sanctioned countries like Vietnam and India.
