White House places India in top tier of Chinese transshipment risks

The Story in Brief

India has been placed among more than 40 countries at risk of being used to route Chinese goods around US tariffs, according to a White House report. India is in Tier 1 with Canada, the European Union, Israel, Japan, Mexico, South Korea and Taiwan. The report says the risk exists within large, legitimate trade flows and names India’s Pune-Gujarat-Chennai production belt. It estimates that $67 billion in US-bound goods moved through China, Mexico, India and Vietnam in 2025, causing $28 billion in lost US tariff revenue.

India’s external affairs ministry said it is examining the report’s findings and methodology. Spokesperson Randhir Jaiswal said India has strong customs, rules-of-origin and export laws, and that violations are dealt with under the law. The report does not accuse the listed governments of deliberately enabling evasion. The United States plans tougher checks, including AI-based monitoring and possible retrospective tariffs on shipments found to have been transshipped.