
A new White House report titled 'The Great Transhipment Scam' has identified India as a Tier 1 country enabling China to evade U.S. tariffs through illegal transshipment.
The report specifically names the Pune-Gujarat-Chennai belt as a key area for routing Chinese goods, estimating that $67 billion in goods were transshipped through hubs including India in 2025.
The U.S. government claims this practice resulted in $28 billion in lost tariff revenue, adding to existing tensions as the U.S. considers further tariffs on India for Russian oil imports.