China has rejected a recent U.S. government report accusing Chinese exporters of circumventing American tariffs by routing goods through Mexico and other countries. The White House document alleges that such practices have resulted in significant job losses and economic harm to the United States, prompting new trade tensions alongside reports that Mexico is considering additional restrictions on Chinese imports.

At a press briefing in Beijing on Thursday, He Yadong, a spokesman for China’s Ministry of Commerce, dismissed the report as misleading and accused the United States of engaging in protectionism. He characterized the U.S. tariffs as the primary threat to the stability of global supply chains and criticized Washington for blaming external factors for its own economic difficulties. He called for an immediate end to accusations against China and reiterated the country's commitment to international trade based on equality and mutual benefit.

The 25-page report, released last week by the White House Office of Trade and Manufacturing Policy under the direction of trade adviser Peter Navarro, is titled “The Great Transshipment Scam.” It identifies over 40 countries that pose heightened risks of what it terms illegal transshipment—where goods originally produced in China are diverted through third countries to evade U.S. tariffs by falsely claiming a different country of origin.

Mexico is singled out as one of the top hubs for such diversion, along with India and Vietnam. The report estimates that these countries collectively facilitated the movement of approximately $67 billion worth of Chinese goods into the United States in the past year. It also names other countries, including Canada and several in Southeast Asia, where Chinese exporters are alleged to conduct additional processing, such as sewing, labeling, and packaging, to disguise product origins. While the report attempts to quantify the economic impact, suggesting the loss of up to 450,000 American jobs and $150 billion in output, it acknowledges that not all trade shifts conclusively reflect illegal activity.

In response to these accusations, Mexico has yet to formally address the allegations, even as Mexico’s largest foreign investors urge the government to take action. Meanwhile, reports indicate that Mexican officials are considering imposing new tariffs on certain Chinese goods, particularly steel and textiles, citing concerns about dumping practices harming domestic industries and employment. Discussions with U.S. authorities have included suggestions for harmonizing tariff policies across North America, coinciding with the ongoing review of the United States-Mexico-Canada Agreement (USMCA).

Mexico currently levies tariffs on a broad range of imports from countries without free trade deals, including China, under measures enacted in early 2026. These tariffs target over 1,400 products across sectors such as steel, aluminum, textiles, and automotive parts, with the stated aim of protecting hundreds of thousands of Mexican jobs. Economy Secretary Marcelo Ebrard and President Claudia Sheinbaum have characterized these tariffs as neutral policies designed to safeguard domestic employment without obstructing international trade.

China has urged Mexico to reconsider what it describes as hastily implemented protectionist measures. It also notes that a formal investigation into trade barriers imposed by Mexico, initiated in September 2025, remains unresolved. As of now, representatives from Mexico’s Economy Ministry and the Chinese embassy in Mexico City have not publicly responded to inquiries about the situation.

The trade dispute adds to existing strains between the U.S. and China on issues including semiconductors, artificial intelligence, and rare earth materials, all unfolding ahead of a planned visit by President Xi Jinping to Washington later this year.