India, Aug. 14 -- A new White House report has named India as a major part of a "shadow transhipment network" that has allowed Chinese goods facing high US tariffs to enter the American market by rerouting through third countries facing lower tariffs. The report - entitled the "Great Transhipment Scam" and championed by key Trump adviser Peter Navarro - estimates the value of potentially illegal transhipment at roughly $60 billion, costing the US government tens of billions in lost tariff revenue.

The report traces the origins of the problem to 2018, when the Trump administration imposed Section 301 tariffs on select Chinese goods to remedy America's growing trade deficit with China.

"After their imposition, Chinese exporters increasing...