The White House says tariff evasion through transshipment is eroding President Donald Trump's trade agenda, with a White House Office of Trade and Manufacturing Policy report estimating $19 billion to $26 billion in lost annual revenue and identifying China as the main source of goods routed through more than 40 countries. The report said companies can disguise a shipment's true country of origin or misstate its value or classification to reduce duties, an incentive that supply-chain executive Ryan Petersen said grows as tariffs rise. It also highlighted a $112 billion gap between China's customs data and U.S. Census figures for bilateral shipments last year as a sign of unusually large trade discrepancies, though not direct proof of fraud. The administration says it has tightened rules for foreign importers and is using AI to analyze shipment data, routing histories and customs documents as it tries to protect revenue and prevent compliant companies from being undercut.