Now Reading: US names India in ‘Great Transhipment Scam’ crackdown
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US names India in ‘Great Transhipment Scam’ crackdown
The White House on Thursday accused India and over 40 other nations of helping Chinese exporters evade US tariffs through transshipment, a practice it called the 'Great Transhipment Scam'. A report by…
The Story in Brief
The White House on Thursday accused India and over 40 other nations of helping Chinese exporters evade US tariffs through transshipment, a practice it called the 'Great Transhipment Scam'. A report by the Office of Trade and Manufacturing Policy places India in Tier 1 ('Diversified Scale Leaders') alongside Canada, the EU, Japan and Mexico, where transshipment risks are embedded within legitimate trade. The report estimates the rerouted trade at $60 billion, though other estimates range from $40 billion to $303 billion.
Senior trade adviser Peter Navarro warned that countries like India attempting transshipment would face deterrence as US tariffs rise. The US plans stronger enforcement: an executive order, an AI-driven monitoring system called 'Detective Border', and anti-transshipment clauses in future trade deals, including any pact with India. Penalties could include retroactive tariff claims on a company's shipments over the past year. The report lands as India and the US negotiate a reciprocal tariff deal, complicated by US pressure over India's Russian oil purchases.
The Indian Opinion
The White House report is a blunt tool in a complex trade war. Naming India alongside friends like Canada and Japan suggests this is more about pressuring China than punishing New Delhi. But the narrative that India is a willing conduit for Chinese goods overlooks a key fact: the gap between US tariffs on China and others is what makes transshipment profitable. The real test will be whether the proposed anti-transshipment clauses in the India-US trade deal target actual evasion or merely become a pretext for broader tariff hikes. How much of the $60 billion estimate can Washington prove is actually laundered via Indian ports?
Sources (2): rediff.com, timesnownews.com
This story was synthesised by AI from the 2 sources linked above.
Updated: this story now draws on 2 sources.
