Now Reading: US names India in ‘shadow network’ helping China evade tariffs
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US names India in ‘shadow network’ helping China evade tariffs
The United States has accused India and over 40 other countries of operating a 'shadow trans-shipment network' that helps Chinese exporters dodge US tariffs. White House trade adviser Peter Navarro released a…
The Story in Brief
The United States has accused India and over 40 other countries of operating a 'shadow trans-shipment network' that helps Chinese exporters dodge US tariffs. White House trade adviser Peter Navarro released a report titled 'The Great Transshipment Scam' on Thursday, placing India in Tier 1, 'Diversified Scale Leaders', alongside Canada, the EU, Japan, Mexico, and others. These nations are described as large industrial bases where transhipment risks are embedded within legitimate trade.
Navarro explicitly named India during a briefing, warning that higher US tariffs would tempt countries like India to attempt transhipment. The report estimates the annual value of illegally transshipped goods at between $40 billion and $303 billion. The US plans to deploy an AI-driven 'Detective Border' system to screen shipments, and said anti-transhipment clauses will be written into all future trade deals, including any agreement with India.
The Indian Opinion
The 'Great Transhipment Scam' report is a blunt negotiating tool, not a neutral audit. By placing India alongside Canada and the EU in Tier 1, Washington signals that no major trade partner is exempt from scrutiny, yet the report offers no case-by-case evidence of Indian firms cheating. The real test will come when anti-transhipment clauses land in the ongoing reciprocal tariff talks. Will India accept retroactive tariff claims on past shipments? That single clause will reveal whether this is principled enforcement or pressure dressed up as policy.
Sources (2): timesnownews.com, thehindu.com
This story was synthesised by AI from the 2 sources linked above.
Updated: this story now draws on 2 sources.
