Now Reading: US names India among 40 hubs in transshipment scam
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US names India among 40 hubs in transshipment scam
The Trump White House on Thursday released a report accusing China of routing exports through third countries, including India, to avoid US tariffs. The practice, called transshipping, costs the US $19 billion…
The Story in Brief
The Trump White House on Thursday released a report accusing China of routing exports through third countries, including India, to avoid US tariffs. The practice, called transshipping, costs the US $19 billion to $26 billion annually in lost revenue. White House trade adviser Peter Navarro said China is 'laundering its exports' through more than 40 nations, and warned that India could also face penalties. The report estimates the total value of transshipped goods at $34.2 billion to $303 billion annually. The US has started using artificial intelligence to detect tax evasion. The allegations come ahead of a planned September visit by Chinese President Xi Jinping.
The Indian Opinion
The US report names India among 40 transshipment hubs, but it overlooks that American tariffs have encouraged this rerouting. India has its own trade disputes with China, and the White House conveniently lumps all developing nations together. The real test will be whether Washington provides concrete evidence of Indian firms abetting Chinese evasion, or if this is merely posturing before Xi Jinping's visit.
Sources (2): economictimes.indiatimes.com, ndtv.com
This story was synthesised by AI from the 2 sources linked above.
Updated: this story now draws on 2 sources.
