US Accuses Nine Latin American Nations of Aiding China Tariff Evasion
SCMP · 1 SOURCESabout 2 hours ago2 MIN
Summary
The White House issued a report on Thursday identifying nine Latin American countries as elevated-risk venues for illegal transshipment, the practice of routing Chinese goods through third nations to circumvent US tariffs. Mexico, Panama and Colombia were newly named alongside six other regional nations already on the list. The report signals escalating US enforcement against what Washington characterizes as systematic attempts to undermine its trade war with Beijing.
Key Points
- Mexico imposed tariffs of up to 50 percent on Chinese automobiles in December 2024, ahead of the United States-Mexico-Canada Agreement review
- Panama's Supreme Court annulled Hong Kong's CK Hutchison's canal port concessions in January 2025, drawing a US$2 billion arbitration claim and freezing Chinese state investment
- Colombia applied a 35 percent duty on steel and metalworking imports in March 2025, the WTO ceiling aimed principally at China
- Executive Order 14326, signed July 2025, imposes a 40 percent penalty duty on goods diverted to evade tariffs, replacing the standard reciprocal rate
- The US Commerce and Homeland Security departments must publish a new list every six months naming countries, entities and facilities involved in transshipment
Why It Matters
The designations carry tangible consequences at the US border, as anti-transshipment clauses are now embedded in recent American trade agreements. With over 40 countries identified globally, the report signals Washington is prepared to escalate trade restrictions against intermediaries enabling Chinese goods to avoid tariffs, potentially disrupting supply chains across the Americas .
The designations carry tangible consequences at the US border, as anti-transshipment clauses are now embedded in recent American trade agreements. With over 40 countries identified globally, the report signals Washington is prepared to escalate trade restrictions against intermediaries enabling Chinese goods to avoid tariffs, potentially disrupting supply chains across the Americas .