India is once again in the U.S.’ crosshairs, this time for allegedly allowing China to evade U.S. tariffs by routing its exports through the country. The latest allegations are part of a new White House report called ‘The Great Transhipment Scam’.
The U.S. had in 2018 levied tariffs ranging from 7.5% to 100% on goods from China under Section 301 of the Trade Act of 1974 for unfair trade and tech practices. On July 24, 2026, it added a further 12.5% tariff for forced-labour compliance gaps. Earlier reporting noted: It was released amid a downturn in India-US relations and six days after the US Senate on Friday last approved , by 86 votes to 11, a bill authorising tariffs of up to 100% on countries, including India, buying Russian oil, gas and other exports.
The bill’s sponsors named India as one of five target economies even as US allies in Europe were left out of its ambit despite similar purchases.
Earlier reporting noted: “For years, the great transshipment scam has let Communist China launder its exports through more than 40 countries,” Navarro was quoted as saying by news agency PTI .
How the scam supposedly works
“Such tariff arbitrage creates the financial engine behind the Great Transshipment Scam,” the report added. “The savings are more than sufficient to finance the capital equipment, logistics infrastructure, light assembly plants, repackaging operations, and ‘screwdriver factories’ needed to support the scam across Southeast Asia, Mexico, India, and Eastern Europe.”
