India Helping China? US Alleges

The United States has raised a fresh allegation involving India and China. The Trump administration has accused more than 40 countries, including India, of helping Chinese goods reach the US market while avoiding American tariffs.

The US says some Chinese products may be sent through third countries before being exported to America. This process is known as transshipment. According to Washington, it can make Chinese goods appear as if they came from another country and help exporters avoid higher duties.

India has been placed among the countries that Washington considers at risk of being used for such activity. US trade adviser Peter Navarro has warned that countries allowing this practice could face tougher trade measures.

The White House says the problem could involve a large amount of trade. A recent US report estimated that as much as $303 billion worth of goods could be moved through third countries to avoid tariffs, although the actual figure is uncertain. The US also estimates that tariff evasion could cost it billions of dollars in lost revenue every year.

To tackle the issue, the US plans to use artificial intelligence to study shipping routes, trade data and product origins. The aim is to identify shipments that may be hiding their real Chinese origin.

The latest allegation comes at a sensitive time for India and the US. Both countries are still engaged in trade negotiations, while India is also trying to manage its economic relationship with China.

Importantly, the US allegation does not mean that India is officially helping China evade tariffs. Washington is pointing to the risk of Chinese goods being routed through India and other countries. India has not been accused of officially supporting such a policy.