US report places India among top China tariff-evasion enablers

The Story in Brief

A White House report has placed India among the top enablers of Chinese tariff evasion, accusing exporters of routing goods through the Pune-Gujarat-Chennai belt to avoid US duties. The report, titled ‘The Great Transhipment Scam’, estimates $67 billion worth of goods were transhipped from China via Mexico, India, and Vietnam in 2025, costing Washington $28 billion in lost tariff revenue. India is in Tier 1, alongside Canada, the EU, and Japan, described as “Diversified Scale Leaders” where transhipment risk sits within broad legitimate trade. US trade adviser Peter Navarro singled out India and Vietnam, warning that higher tariffs could increase incentives for such practices. The report comes as Washington and New Delhi negotiate a reciprocal trade deal, and existing US tariffs on India already stand at 10% for forced-labour compliance gaps, with potential 100% tariffs over Russian oil imports under consideration. The US Trade Representative is also investigating India for excess capacity, which could lead to further duties. The report does not allege deliberate government facilitation but identifies jurisdictions with elevated risk.