The White House Office of Trade and Manufacturing released an extensive report this week identifying the major nations who enable China to transship goods into the U.S market in an effort to avoid tariffs. [REPORT HERE]
Within the report several nations and regions are identified as being used by Chinese manufacturers to avoid U.S. customs and duty enforcement mechanisms. However, both Canada and Mexico are cited as primary enablers of the process.
The issue strikes at the heart of the problem identified long ago with the NAFTA agreement, and the problem only worsens when the USMCA provisions on country of origin are not enforced.
When you remove oil and lumber, the majority of Canada’s manufactured exports to the USA contain Chinese component parts and this has been the source of much friction in the current trade negotiations. The manufacturing supply chain within all free trade agreements only works when the source of component goods is accurately recorded.
CANADA – […] The report released Thursday from the Office of Trade and Manufacturing Policy — titled “The Great Transshipment Scam” and featuring a timely image of a Trojan horse on the front page — accuses China of routing their exports through third countries with more favourable U.S. tariff rates.
An estimated 40 countries, including Canada, comprise a “shadow transshipment network” used by China, the report argues.
“In plain terms, illegal transshipment is smuggling disguised as trade — fraud cloaked in paperwork — and, in truth, nothing new,” the report says, adding what has changed is the “breadth, depth, and sophistication” of China’s network. (more)
As USTR Jamieson Greer continues meeting with Canadian counterparts, the core issues are unresolved because -in part- Canada is incapable of reconciling the problem. The Canadian team have reported their intention to remain in the U.S. through the weekend hoping to continue negotiations. However, there is little optimism so long as the great pretending continues.
President Trump and USTR Greer have continually said they want Canada to go and seek additional trade agreements with other countries, in part to break the dependency on the USA and in part so that Canada can learn the lessons of reciprocity.
For several decades Canada has used their access to the U.S. market without reciprocity. In fact, one of the great admissions by former Prime Minister Justin Trudeau was openly telling President Trump their unilateral trade reliance was not something the Canadian government was capable of correcting. This led to President Trump remarking that if Canada is going to act like a state inside the U.S. economic system, then Canada should become the 51st state.
The issue is seemingly irreconcilable, and the Canadian govt continue to gaslight the Canadian people on the core issues at the heart of the matter.
Charette and @DLeBlancNB need to negotiate an FTA arrangement with another country in order to learn what trade reciprocity actually means. Only after that experience does it make sense to sit down with @USTradeRep . https://t.co/QI5KRf82mL
— TheLastRefuge (@TheLastRefuge2) August 14, 2026
Do you both accept that President Trump and USTR Greer want Canada to go forth and achieve bilateral FTAs with other countries?
You need experience negotiating reciprocity before you can genuinely sit at the table with the USA. pic.twitter.com/qUkHDYUdSk
— TheLastRefuge (@TheLastRefuge2) August 14, 2026
Why aren’t we sitting down and having serious conversations with American companies that are doing business with China but using shippers from Vietnam, Korea, Phillipines, and other countries? I realize that it would crimp the syle of the Amazons, Wayfairs and other major American mass sellers but they know what the deal is and they turn a blind eye to it.
If we tariff everything at the ports of entry, then there would be no advantage to China using fronts for their operations. It would require many more employees at the cross points into the US, but some of those unnecessary workers who lost their jobs in DC (as well as some still there doing nothing productive) could be transferred to man these “inland ports of entry”. No road should have access across a border without having one of these checkpoints, even state or local roads.
Because the “we” you are referring to are paid to enable it, not stop it.
Amazon then delivers Chinas junk to Americans.
Or
https://xcancel.com/TheLastRefuge2/status/2088537651020214659
Ordinary Canadians do not give 2 hoots about what Justin Trudeau told President Trump. In the 10 years Trudeau was PM he was more interested in turning a blind eye to the Chinese and criminal gangs infiltrating the Canadian bureaucracy with numerous compromised officials and giving as much as he could to the Indigenous activists tribes.
This should concern everyone!
Still happening and local residents wells are dry
Thanks for posting this. Everyone should know and it needs to stop!
China has nuclear missiles aimed at the United States and the ambition to leverage them.
We should not trade with nations that demonstrate they are “out to get us”.
China is out to destroy this country directly or through proxies like North Korea. (220 million stolen voter records)
China aggressively seeks monopolies on everything from ship building to rare earth minerals for leverage.
The Panda is not our friend, based on their actions.
Countries who transship from China cause real harm to the United States economy.
They should pay the highest tariffs to sell their products here.
The countries named in Sundance’s article should not be given any sort of advantage in our markets, nor should their citizens be allowed to emigrate to our country. The same is true for 3rd world sh*thole countries and every single Muslim country!
Why You Need a Purpose Working The Life Every Man Needs — A traditional, Alan Jackson-style country song about the value of hard work, family, and having a purpose. Doing nothing brings trouble, but getting up, earning your keep, and being someone your boss and family can count on gives life real value and peace of mind. When you get down the road, you’ll be able to look back on a job well done.
I’ve noticed over last year that items I’ve purchased on line and appear to be located in America go through a long and drawn out delivery route as evidenced by tracking through several EU countries like Italy, Spain, Portugal, Ireland etc. and take months to arrive. To me that what the WH is saying is in deed true.
just bought some furniture from Wayfair. Came from USA. it arrived in boxes labeled Made in China. Looks like the USA is guilty of Transshipping also
In trade law, transshipment normally means moving goods through a third country without substantial transformation, then relabeling or re‑documenting them to hide their true origin and evade tariffs. The White House’s 2026 report (“The Great Transshipment Scam”) uses a much broader, politicized definition that blurs several distinct practices under one label.
So the White changes the definition of transshipment just so it can take another shot at Canada. It is The White House working on the narrative rather than reality.
The term is being stretched beyond its technical meaning for political and negotiating purposes
”the Canadian govt continue to gaslight the Canadian people on the core issues at the heart of the matter.”
The only people gaslighting the Canadian people on an ongoing basis, are Donald Trump, Jameson Greer, Howard Lutnick and Pete Hoekstra. As for Justin Trudeau he has now sadly found his true purpose in life. Acting as a rich playboy.