The White House has placed Taiwan, Japan, South Korea, the European Union and several other major trading partners in a Tier 1 risk category for potential illegal transshipment of Chinese goods, prompting a response from Taiwan's Ministry of Economic Affairs on the 14th. The ministry said the designation is a risk assessment based on overall trade volume and supply chain characteristics rather than a determination that Taiwan engaged in violations. The White House Office of Trade and Manufacturing Policy said in a report issued on the 13th that shipments of Chinese goods facing high tariffs have increasingly been rerouted through third countries, where they undergo simple assembly, repackaging or relabeling to change their declared origin before entering the United States. It grouped economies into three risk tiers using indicators including economic size and integration with Chinese supply chains. Taiwan, South Korea, Japan, Canada, the European Union, India, Israel and Mexico were listed in Tier 1 because of their substantial cargo flows with China, diversified industrial bases and mature export platforms to the United States. Taiwan's MOEA said economies such as Taiwan, the European Union, Japan and Canada were placed in the top tier because they maintain sizable trade with both the United States and China and have broad industrial capacity. The ministry said Taiwan remains a trusted and important part of global supply chains and pledged to keep working with the Customs Administration under the Ministry of Finance to strengthen controls, provide compliance guidance and strictly prevent origin fraud. Market observers said the move points to tighter U.S. enforcement on country-of-origin checks, which could mean more inspections, longer customs clearance and higher compliance costs for exporters, including Taiwanese companies, even without any formal finding of wrongdoing.