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
Canada more a rapist than a country.
Well said Sundance!
I wonder if this includes manufacturers including US manufacturers that use Chinese parts in their assembly?
Manufacturers may or may not have learned their lessons, when I was in the car biz in the 90’s the mexican built Buick Centurys were constantly under recall for things the US built ones were not, I would guess they were using cheaper items sourced from chyna and the like (MX labor too). That sort of thing cost them Millions or even Billions of dinero’s & government reporting & interference which is something that every company I ever knew wanted to avoid at all costs.
Ultimately it depends on the bottom line of cost vs benefit & only the corporate pencil pushers know what that is & that is a HUGE complicated equation to find out the answer.
Perhaps the only way we will know is to require a Monroney sheet on such things. Otherwise who would know? This has been going on for a very long time.
The truth, when spoken directly and unapologetically into your face, hurts.
Canada is a major hurting country. I actually pity people who live/endure there.
It’s exactly the real estate the 1 square rapacious London mile of pederasts and oligarchs wants to despoil next. Carney is their point boy.
It’s coming, not in my lifetime, but soon enough.
Canada and the USA will go to war like in 1860.
And Canada will lose.
There also was the Aroostook war before that between 1838 and 1839.
Also thinking of another short one involving a disputed border and a island on the Pacific Northwest coastline. Don’t recall the name of it in Washington State.
No one takes them seriously, it will be impossible to get any deal with another country, my family there are in for some serious pain, only themselves to blame.
This is going to get a bit uglier.
Canada abusing US market access to transship foreign goods. Who didn’t see that coming?
Cannot say that this wasn’t the point of NAFTA from the start. Wealth exfiltration or rather looting, made a some very rich indeed.
Now for the reckoning.
Proving once again….
All commies hang together….
We should make it so….
NO MERCY!
President Trump (is right again)! 51st state is the only logically correct direction for Canada to beg for at the moment. Their tomfoolery may drag them past the begging stage real soon. 50% tariffs coming up!
Tier 3 mentions those ‘bonded warehouses’….also lots of small countries in the right hand column of trans shippers.
Many warehouses have an ‘area’ set aside for items to be located in the ‘bonded warehouse’ area, separate from other products. I don’t know much about the concept, I had come across it maybe a year ago…when buying a new carpet cleaner…the date on the box showed the warranty would be expired…hence the extra offer of product insurance at check out. Bad enough to pay current price for an outdated product…and then for product insurance?
Would bet all the data centers Canada is developing are used by China to spy on the U.S. also.
I wonder if it’s even possible to inflict enough economic pain to Canadians to break through the absolute lip lock the CBC has on information. It’s 24/7 Orange Man bad and Carney is their savior.
You’d think that since so much of the population lives close to the border, that some would tune into American news that’s reporting what’s really going down?
Will the US – Mexico bi-lateral trade agreement get done soon ?
So Canada can FAFO ?