US puts India in highest risk tier for Chinese goods transshipment

The Story in Brief

The White House has named India among more than 40 countries that face risks of becoming conduits for Chinese goods seeking to avoid American tariffs. A report by the Office of Trade and Manufacturing Policy, authored by senior trade adviser Peter Navarro, accuses exporters of rerouting shipments, relabelling products or falsely declaring country of origin to evade US duties. India was placed in Tier 1 ("Diversified Scale Leaders") alongside Canada, the EU, Japan, Mexico, South Korea and Taiwan. Navarro specifically warned India during a briefing, saying it is "well on our radar screen".

The report describes the practice as the "Great Transshipment Scam" and claims the US loses $19 billion to $26 billion annually in tariff revenue. Washington plans an AI-based monitoring system and anti-transshipment clauses in future trade agreements, including a potential US-India deal. The classification comes at a sensitive point in India-US trade negotiations over a reciprocal tariff agreement.