Now Reading: US report places India in China tariff-evasion risk network
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US report places India in China tariff-evasion risk network
A White House report has named India among more than 40 countries and trading jurisdictions at risk of helping Chinese goods bypass higher US tariffs. The report, The Great Transshipment Scam, places…
The Story in Brief
A White House report has named India among more than 40 countries and trading jurisdictions at risk of helping Chinese goods bypass higher US tariffs. The report, The Great Transshipment Scam, places India in its first tier and identifies the Pune-Gujarat-Chennai production belt as a possible route for pumps and compressors. It estimates that $67 billion in China-linked goods reached the US through hubs including India, Mexico and Vietnam in 2025, causing an estimated $28 billion in lost tariff revenue. It gives no India-specific figure and says the risk is embedded in legitimate trade flows.
The Ministry of External Affairs said India was studying the report’s findings and methodology. Spokesperson Randhir Jaiswal said India has robust customs and origin rules, with violations dealt with under law. The Global Trade Research Initiative questioned the report’s approach, warning that legitimate manufacturing could be treated as illegal transshipment. US Customs may use shipment data and artificial intelligence to target suspicious consignments, raising the prospect of more inspections and delays.
The Indian Opinion
Claims that India is simply a conduit for Chinese goods go beyond what the report proves, since it provides no India-specific estimate and accepts that risk sits within legitimate trade. But dismissing every concern as a US negotiating tactic would also be lazy. The real test is whether Indian exporters can document substantial production and origin for the flagged goods, and whether US Customs finds violations in actual consignments rather than patterns alone.
Sources (2): thehindubusinessline.com, rediff.com
This story was synthesised by AI from the 2 sources linked above.
Updated: this story now draws on 2 sources.
