White House: China is using Georgia to circumvent US tariffs

US tariffs on China

According to a White House report titled The Great Transshipment Scam, China is using third countries, including Georgia, to circumvent US tariffs.

The Trump administration’s report names 40 countries and territories as participants in China’s “shadow shipping network”. The White House says these countries may have helped China circumvent US trade restrictions by transshipping and processing goods destined for the US.

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The report divides the economies into three categories:

The first category includes countries and trading blocs that receive significant volumes of China-linked goods but have diversified industrial markets. The White House places Canada, the European Union, India, Israel, Japan, Mexico, South Korea and Taiwan in this group.

The second category includes countries with significant economic integration with China. According to the report, these are Brazil, Indonesia, Malaysia, Thailand, Turkey and Vietnam.

The third category includes China’s “secondary targets”. The White House considers this group to include relatively small economies such as Georgia, Azerbaijan, Kazakhstan, Uzbekistan, Argentina, Switzerland, Panama, Colombia, Chile, Cambodia and the United Arab Emirates.

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According to the report, rerouting Chinese goods through third countries is one of the mechanisms companies use to avoid US tariffs on Chinese imports.

The White House published the report as part of the broader trade policy of the US administration. One of its main goals is to tighten enforcement of restrictions on imports from China and prevent companies from circumventing tariffs through third countries.

In 2025, Georgia imported $1.98 billion worth of goods from China, while its exports to the US amounted to just $120 million.

The value of goods imported from China into Georgia was significantly higher than the value of Georgian exports to the US. According to 2025 data, ferroalloys accounted for the largest category of goods imported from China into Georgia.

During the same period, Georgia’s main exports to the US included power-generating equipment and passenger cars.

Trade data show that Chinese imports account for a significant share of Georgia’s trade with China, while Georgian exports to the US remain relatively small.

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US President Donald Trump began imposing and gradually increasing tariffs on Chinese goods in February 2025. By April 2025, the rate had reached 145%. Beijing responded with similar measures, imposing a 125% tariff on US products.

Following talks in May that year, the US cut the newly imposed tariffs from 145% to 30%, while China reduced its tariffs from 125% to 10%. However, other tariffs introduced before 2025 remained in place.

According to data published by the US Congress, various tariffs on Chinese goods are currently in effect under several US laws. Some target China directly, while others apply to specific economic sectors and also affect Chinese goods.

US tariffs on China