White House Report Says Tariff Evasion Costs U.S. Up To $26 Billion
The Trump White House released a report on Thursday, August 13, 2026, saying tariff evasion through transshipment is costing the United States between $19 billion and $26 billion a year.[1]
The report says China has laundered exports through more than 40 countries, including Mexico and Malaysia, after the 2018 tariffs.[1] Analysts used a central estimate of $75 billion in transshipped goods to calculate those losses, while their broader estimates ranged from $34.2 billion to $303 billion annually.[1]
After the Trump administration imposed tariffs in 2018, exporters began rerouting goods through third countries to avoid higher duties, the report says.[1] White House trade adviser Peter Navarro said future U.S. trade frameworks will include penalties for partners that facilitate tariff evasion.[1] He said U.S. Customs and Border Protection is piloting artificial intelligence tools to spot suspected transshipments.[1] Navarro also said CBP can retroactively impose tariffs for roughly one year on misdeclared imports.[1]
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📌 Key Facts
- On Thursday, August 13, 2026, the Trump White House released a report estimating $19-$26 billion in annual lost U.S. tariff revenue from transshipment.
- The report says China has laundered exports through more than 40 countries, including Mexico and Malaysia, after 2018 tariffs.
- Analysts cited a range of $34.2 billion to $303 billion in transshipped goods annually and used a central estimate of $75 billion to calculate losses.
- Peter Navarro said future U.S. trade frameworks will include penalties for partners that facilitate tariff evasion through transshipping.
- Navarro said U.S. Customs and Border Protection is piloting artificial intelligence tools to identify suspected transshipments and can retroactively impose tariffs for roughly one year of misdeclared imports.
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