White House Says China Uses "Transshipment" to Avoid US Tariffs
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The White House has released a new report accusing China of avoiding billions of dollars in US tariffs. Tariffs are taxes placed on goods imported from other countries.
The report calls this practice a 'Transshipment Scam.' It claims the scheme could be costing the US up to $26 billion.
Transshipment is a method where goods are sent to a third country before being shipped to their final destination. This process can hide the goods' true country of origin.
According to the White House, China has been using transshipment to move goods through other nations before they reach the US market. By doing this, companies may pay lower tariffs than they should.
The report was released under the Trump administration, which has taken a firm stance on trade with China in the past. President Trump has repeatedly pushed for tighter trade policies aimed at protecting American industries.
The White House places direct blame on China for the alleged scheme, though the summary does not provide further details about specific companies or products involved.
Tariffs are a major tool used by the US government to control trade and protect domestic businesses from foreign competition. When countries find ways around these tariffs, it can hurt American manufacturers and reduce expected government revenue.
The exact methods used in the alleged transshipment scheme were not fully outlined in the available information. However, the report suggests that customs and trade officials may need to strengthen their enforcement of import rules.
This report adds to ongoing tensions between the US and China over trade practices. It remains to be seen whether the White House will announce new measures to address the alleged scam.
Officials have not yet detailed what actions, if any, the government plans to take next in response to the findings.
Vocabulary6 words
- tariff
- a tax added to goods brought in from another country
- transshipment
- moving goods through another country before reaching the final destination
- scam
- a dishonest plan to gain money or an advantage
- Trump
- the President of the United States
- trade policy
- official rules a government makes about buying and selling with other countries
- enforcement
- making sure people follow rules or laws
Quiz
Answer key
1. China is avoiding billions in US tariffs through transshipment 2. By routing goods through another country to hide their origin 3. True
Fill-in-the-blank listening
Play the audio again and fill in the missing words as you listen.
The White House has released a new report accusing China of avoiding billions of dollars in US _____.
The report calls this practice a 'Transshipment _____.'
It claims the scheme could be costing the US up to $26 _____.
_____ is a method where goods are sent to a third country before reaching their final destination.
According to the White House, China has been using transshipment to move goods through other _____ before they reach the US market.
The report was released under the _____ administration.
The White House places direct _____ on China for the alleged scheme.
Tariffs are a major tool used by the US government to control _____ and protect domestic businesses.
The report suggests that customs and trade officials may need to strengthen their _____ of import rules.
This report adds to ongoing _____ between the US and China over trade practices.
Discussion questions
- Why might a country try to avoid paying tariffs on its exports?
- How could transshipment affect businesses in the country that imports the goods?
- Do you think tariffs are an effective way to protect domestic industries? Why or why not?
- What steps could governments take to detect and stop transshipment schemes?
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