White House Report Accuses 9 Latin American Nations of Helping China Evade US Tariffs — Even Countries That Recently Pushed Back on Beijing

On August 14, 2026, the White House released a report titled "The Great Transshipment Scam" that accuses more than 40 countries of participating in a global "Shadow Transshipment Network" helping Chinese exporters illegally evade US tariffs. The practice involves routing goods through third countries with lower American import duties to disguise their Chinese origin . The report, led by White House trade advisor Peter Navarro, estimates this costs the United States between $19 billion and $26 billion in lost tariff revenue annually .

The report is significant not only for the scale of the allegations but for the specific inclusion of nine Latin American nations — several of which had recently taken actions to restrict Chinese commercial interests in the region.

The Nine Latin American Countries Named

The White House report identified nine Latin American countries as posing a high transshipment risk: Mexico, Panama, Colombia, Brazil, Argentina, Chile, Peru, Costa Rica, and Ecuador . These nations join a global list that includes major US trading partners such as Canada, India, Japan, South Korea, Vietnam, and the European Union .

The report defines transshipment as the practice of moving goods through an intermediate country before they enter the United States under a different country-of-origin label, often qualifying for lower tariffs than would apply to direct Chinese imports . The White House says Chinese exporters use relabeling, repackaging, reinvoicing, minimal processing, and false country-of-origin claims to conceal the true origin of goods .

The Notable Detail: Countries That Recently Pushed Back on China

A striking feature of the report is that it names Mexico, Panama, and Colombia — three countries that, according to MSN, "moved against Chinese commercial interests over the past year" — as among the transshipment hubs . This means that even as these governments took steps to restrict or push back on Chinese investments and commercial influence in the region, the White House assessed they remained significant conduits for tariff-evading Chinese goods .

The inclusion underscores how deeply embedded Chinese export routes have become in Latin American logistics networks, and how diplomatic actions against Chinese commercial interests do not necessarily disentangle a country from serving as a transshipment corridor.

How Transshipment Works and What It Costs the US

The White House report explains that after the US imposed initial tariffs on Chinese goods in 2018, China's direct share of US imports declined substantially. However, imports from the identified transshipment economies rose — a shift the report alleges represents goods being rerouted rather than genuinely shifting production .

The estimated annual revenue loss of $19 billion to $26 billion is based on reviews of five government and private-sector estimates of transshipment and trade-transfer exposure . Beyond lost tariff revenue, the report also estimates that the practice costs the US economy approximately 450,000 jobs .

Goods that are found to have been rerouted to hide Chinese origin already face an additional 40% US penalty duty on top of existing tariff rates . The report warns that US Customs is already using artificial intelligence to identify offending shipments, and the Trump administration has signaled it intends to intensify enforcement .

Broader Implications for Trade and Latin America

The report's publication comes at a time of heightened trade tensions between the US and China, and its naming of key Latin American trading partners puts pressure on those governments to tighten customs enforcement and supply-chain transparency. For Mexico, Panama, and Colombia, the report may complicate ongoing negotiations over trade and investment, as they face the dual challenge of managing relations with both Washington and Beijing.

The full 25-page report, titled "The Great Transshipment Scam," is available from the White House Office of Trade and Manufacturing Policy and lists roughly 40 economies across Asia, Europe, and the Americas that it says form the "Shadow Transshipment Network" .