&imwidth=800&imheight=600&format=webp&quality=medium "Trump admin deploys AI to track China tariff evasion; India, dozens of countries named")
The Trump administration on Thursday (August 13) flagged more than 40 US trading partners as potential risks for helping China evade US tariffs. The administration also said it would use artificial intelligence to identify illegal trade practices in the future.
The countries named in the report include the European Union, Taiwan, Mexico and Canada. India, Japan, South Korea and Vietnam were also among those listed.
The White House report focused on what it called "illegal transhipment". This practice involves sending goods through a third country with lower US tariffs to avoid higher duties imposed by President Donald Trump.
"For years, the great transhipment scam has let Communist China launder its exports through more than 40 countries," White House trade advisor Peter Navarro told reporters.
A report from Navarro's office said more than 40 countries faced an elevated risk of illegal transhipment. It also identified Mexico, Canada, the European Union, India, Japan and South Korea as "China’s biggest enablers".
The report said some countries have become more closely connected to China-linked supply chains.
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US plans AI-powered border checks
Navarro said the White House is working with US Customs and Border Protection to develop an AI-enabled "detective border". The system would help determine whether shipments contain goods that were rerouted through third countries.
According to the report, the system would use shipment data, routing histories and other tools to identify potential cases of illegal transhipment.
Experts have long pointed to supply chain diversions from China, particularly since Trump's first presidency, when Washington and Beijing became involved in a tariff war around 2018.
Economists said countries such as Vietnam benefited as businesses diversified their supply chains.
Since returning to the White House last year, Trump has imposed sweeping tariffs on US trading partners. These duties have added to existing tariffs on Chinese imports.
