What are the U.S.’s latest allegations against India? (FAQ: The Great Transhipment Scam)
The United States alleges that India helps China evade U.S. tariffs through transshipment, where Chinese-origin goods are routed via third countries with limited changes to obscure origin.
What happened: U.S. allegations on transshipment and India’s role
The United States alleges that India helps China evade American tariffs through transshipment—shipping goods through third countries with limited changes that can obscure the original Chinese origin, so the goods may face lower tariff treatment when they reach the United States.
The United States places India among the alleged “enablers” of elevated illegal transshipment risk. The alleged “enablers” named in the news report include Mexico, Canada, the European Union, Japan, South Korea, and India.
The tariff setting: U.S. Section 301 tariffs on China since 2018
The news report describes the United States imposing large tariffs on Chinese goods under Section 301 starting in 2018, with tariff rates varying by product category.
A White House assessment cited in the news report states that the U.S.–China bilateral deficit shrank in 2019–2020, while exporters increased routing through other jurisdictions to reduce exposure to U.S. tariff burdens.
