Now Reading: US report names India in alleged China tariff-evasion network
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US report names India in alleged China tariff-evasion network
India is among over 40 countries accused by Washington of helping China circumvent US tariffs by allowing Chinese goods to be illegally rerouted through its territory, a White House report titled 'The…
The Story in Brief
India is among over 40 countries accused by Washington of helping China circumvent US tariffs by allowing Chinese goods to be illegally rerouted through its territory, a White House report titled 'The Great Transshipment Scam' has alleged. The report, prepared under Peter Navarro, estimates that about $67 billion in US-bound goods were transshipped from China through India, Mexico, and Vietnam in 2025, causing $28 billion in lost tariff revenue.
Responding to the allegations, the Ministry of External Affairs said India has robust laws and customs procedures, and violations are dealt with according to law. The report flags India's Pune-Gujarat-Chennai production belt, specifically identifying pumps and compressors as at-risk product categories. India's trade research body GTRI noted India's substantial manufacturing capacity in these product groups, weakening any presumption that its US exports are simply Chinese goods being rerouted.
The Indian Opinion
The White House report feeds a narrative of India as a back door for Chinese goods, but the numbers tell a more nuanced story. India exported liquid pumps worth $1.61 billion globally while importing only $326 million from China, hardly a rerouting hub. The real test will be whether US Customs, armed with AI tools, finds actual violations or merely trade patterns that reflect India's own manufacturing capabilities. What concrete evidence will Washington present for India-specific transshipment?
Source: thehindubusinessline.com
This story was synthesised by AI from the source linked above.
