White House Trade Adviser Peter Navarro Talks Countries Helping China Avoid Tariffs

Summary

Podcast Summary: Bloomberg Talks

Episode Title: White House Trade Adviser Peter Navarro Talks Countries Helping China Avoid Tariffs
Date: August 13, 2026
Host: Bloomberg (Lisa)
Guest: Peter Navarro, Senior White House Advisor

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Episode Overview

This episode features a detailed conversation with Peter Navarro, Senior White House Advisor, about the administration’s intensified efforts to prevent countries from helping China circumvent U.S. tariffs via “transshipment” schemes. Navarro discusses the launch of the “AI-powered detective border,” the findings from his new report, “The Grand Transshipment Scam,” and the global scale of this evasive trade activity. The conversation also covers the impact on ongoing trade negotiations, policy enforcement, and the administration’s multi-pronged strategy to protect U.S. workers and industry.

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Key Discussion Points and Insights

1. The Grand Transshipment Scam: What Is Transshipment?

• Definition and Tactics: Navarro explains that transshipping is a modern form of smuggling, where Chinese goods are shipped to third countries (like Vietnam or Mexico), relabeled, and then sent to the U.S. to avoid higher tariffs (01:10).
  • Quote: “The crudest form of trans shipping is when China takes a crate of widgets, sends them over to Vietnam or Mexico... then they swap labels. It comes into America at the lower tariff rate.” — Peter Navarro (01:38)
• Policy Background: The strategy by China emerged after the U.S. imposed historic Section 301 tariffs in 2018 to protect American workers (01:46).
• Scope and Complexity: Over 40 countries are allegedly involved in aiding China, with notable participation from Mexico, Southeast Asian nations, and even India (06:26).

2. The AI-Powered Detective Border

• Technological Leap: Navarro describes a new Customs and Border Protection tool powered by AI that monitors global shipping in real-time, identifying likely transshipment schemes with up to 95% accuracy (03:00; 07:12).
  • Quote: “What we can do with AI at the speed of scam is assess with a very high degree of accuracy the probability that that's a transshipment.” — Peter Navarro (02:51)
• Enforcement Mechanisms: Ships flagged by the system are hit with legal forms (Form 28 and Form 29) and liable for cheating the U.S. out of customs revenue (03:44).

3. Shift in Enforcement Focus: Targeting “Enabler” Countries

• Not Just China: Navarro stresses the new approach is less about targeting China directly and more about holding enabling countries accountable (04:31).
  • Quote: “It's not about going after China, it's about going after the more than 40 countries ... that are participating in this.” — Peter Navarro (04:33)
• Trade Negotiations Leverage: Every new trade agreement now has a strict transshipment provision. Countries complicit in the “shadow network” risk severe penalties and losing trade privileges (05:14).

4. Implications for USMCA and Other Trade Talks

• Impact on Mexico and Canada: The U.S. is currently renegotiating USMCA; Navarro suggests these talks will become more demanding for compliance due to their involvement in transshipment (06:38).
  • Quote: “It makes it more likely that any deal that's done will have a transshipment provision in it, a very strong one. ... basically a warning to the world. Don't, don't try to cheat America.” — Peter Navarro (07:00)
• Warning to Global Partners: Executive orders now empower border enforcement to clamp down harder on trade fraud, raising the stakes in international negotiations (07:09).

5. Section 301 and Tariff Enforcement Outlook

• Pending Overcapacity 301: When pressed about the delay in releasing a new “overcapacity 301,” Navarro references ongoing work and a busy schedule with many simultaneous trade initiatives (08:24).
  • Quote: “We are doing an amazing amount of 300 ones. At the same time, we're doing an amazing amount of trade deals and we are moving in Trump time and we're getting stuff done.” — Peter Navarro (08:38)
• Defense of Tariffs: Navarro reaffirms tariffs as central to U.S. economic and national security, referencing recent Supreme Court validation of key tariff laws (08:54).

6. Closing Remarks

• Call to Action: Navarro urges listeners to review the full report on WhiteHouse.gov or in the New York Times and reiterates the administration’s commitment to stopping the scam and defending U.S. jobs (09:25).
  • Quote: “We will defend American business, we will defend American jobs, and we're stopping the great transshipment scam.” — Peter Navarro (09:46)

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Notable Quotes & Memorable Moments

• On the focus of the report:
  “The complexity of the strategies that China is using to evade these tariffs is mind numbing. ... Literally over 40 countries are involved, big and small.” — Peter Navarro (05:43)
• Warning to trade partners:
  “If [countries] cheat, we'll catch them. And if we catch them, then they'll pay a very heavy price.” — Peter Navarro (07:14)
• On technology as a game-changer:
  “We're hitting like over 95% hit rates in terms of accuracy, in terms of identifying transshippers, and that's off the charts.” — Peter Navarro (07:12)

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Timeline of Important Segments

• [01:10] — Navarro introduces the "Grand Transshipment Scam" and outlines his role at the White House.
• [02:50] — Reveal of the new AI-powered border, its functions and partners.
• [04:33] — Navarro clarifies enforcement aims: Targeting the 40+ “enabling” countries.
• [06:26] — Noteworthy mention of countries involved (Mexico, India, Southeast Asia).
• [07:00] — Explanation of trade negotiations and the strengthening of transshipment provisions.
• [07:12] — AI tool's success rate and the impact on enforcement.
• [08:24] — Discussion of pending Section 301 actions, Supreme Court decisions, and policy defense.
• [09:46] — Navarro’s final statement on defending American jobs and ending the scam.

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Summary

In this episode, Peter Navarro unveils the breadth of global participation in tariff evasion, detailing the administration's aggressive, tech-enabled crackdown on transshipping. The message is clear: The U.S. government is leveraging AI, stricter legal tools, and toughened trade agreements to end what Navarro calls the “grand transshipment scam.” His warnings go out to trade partners worldwide—cheat the system, and face serious consequences. The interview provides a revealing look at how trade enforcement strategies are evolving in the face of globalized supply chains and sophisticated tariff evasion schemes.

Transcript

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[Francine Lacqua]

Bloomberg

[Bloomberg Host Lisa]

Audio Studios Podcasts Radio news here's the latest. The Trump administration deploying an AI powered detective border targeting trade partners suspected of helping China avoid tariffs, accusing dozens of countries of participating in a shadow transshipment network. This coming ahead of the President Trump, President Trump's meeting with China's Xi Jinping next month. Senior White House adviser Peter Navarro joins us now. Thank you so much for being with us. I would love to start with the question of what motivated you to write the op ed that you just wrote and just got published now.

[Peter Navarro]

Thank you so much, Lisa. And I'm happy to give Bloomberg actually the exclusive on this. This is the report itself, the Grand Transshipment Scam. And you can download it on the WhiteHouse.gov site or read the op ed New York Times and you can download it there. My job at the White House going back to the first term and the first day is to protect American workers and businesses from predatory mercantilist practices. And as you know, China leads the list in that category. Back in 2018, Lisa, we put on the historic 301 section, 301 tariffs on China to protect American workers. And it's been a very successful policy. But what happened beginning immediately in 2018, is that China strategically began to develop methods of what's called trans shipping. It's basically a modern form of smuggling. The crudest form of trans shipping is when China takes a crate of widgets, sends them over to Vietnam or Mexico or Turkey or wherever, and then they swap labels. It comes into America at the lower tariff rate. China makes out like a bandit, the trans shipping third country makes out because it's, it's facilitating some commerce there and we get cheated out of jobs and treasury revenues. So I've taken this very seriously over the years. I've been working very closely with Customs and Border Protection and we're cracking down. And what's really interesting is this new AI detective border that we're developing at Customs and Border Protection. In the past, it's been Basically paperwork and people, and they've been overwhelmed by the flood of tariff evasion in an era of Trump tariffs. And what I can do with this Detective Border and one of the companies we're working with is Exegers. It's a fantastic company, is we can see in real time every boat and every container coming out in every port in the world. And what we can do with AI at the speed of scam is assess with a very high degree of accuracy the probability that that's a transshipment. And then what we can do when the boat gets here, we slap them with a Form 28 and then likely a Form 29 and collect the revenues that they cheated.

[Bloomberg Interviewer]

Peter, we know this is happening because it's a revolution, because the Chinese trade deficit is falling, but trade flows are staying stable. So it shows that China is doubling down on transshipment. But is there appetite from this administration to go after Beijing for this? Given that there is a debate within the Oval Office about wanting to make sure that they keep the truce alive and Xi Jinping is set to visit the President?

[Peter Navarro]

You're looking at the wrong target here. What's so amazing about this report, and my research, is it's not about going after China, it's about going after the more than 40 countries. And I was surprised by this, frankly, I was surprised how many trans shipping countries it's going about them. And is there appetite? You damn well, there's appetite. It starts with our great US Trade representative, Jamison Greer. What we're doing systematically is negotiating these new deals one by one with countries that want to basically get their tariffs lowered and do that by lowering their own barriers and not cheating. And so every new trade agreement actually has a transshipment provision which basically says if that country participates in the grand transshipment game, if it continues to be part of the shadow transshipment network, it will pay a very heavy price. And so the crackdown, we understand China is just being China, okay? And shame on America, shame on the Biden regime for not cracking down on this, okay? But the way to crack down on it is not going after China. It's going after the enablers. And what's so interesting about the this whole thing, I got a doctorate in economics, and part of my thing was industrial organization and strategy. I mean, the complexity of the strategies that China is using to evade these tariffs is mind numbing. I mean, literally over 40 countries are involved, big and small. Surprisingly, Mexico is one of the biggest ones. They're able to basically get the USMCA Tariffs through deceit.

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[Peter Navarro]

India is well on the radar screen. You wouldn't think that. And then Southeast Asia is kind of the mother load of the whole thing, as you might expect. Vietnam, Cambodia, Malaysia, Indonesia. Yeah, and so on.

[Bloomberg Host Lisa]

When I was reading, when I was reading this report and when I was reading your op ed, one thing that stuck out to me was that the US Is currently ongoing with negotiations to renegotiate USMCA with Canada and Mexico. And you pinpointed Mexico and Canada as some of the offenders. How does this affect negotiations? Does it make it less likely, frankly, that there will be some sort of new deal that is solidified in the near term?

[Peter Navarro]

No, it makes it more likely that any deal that's done will have a transshipment provision in it, a very strong one. And again, I want to emphasize here, this is basically a warning to the world. Don't, don't try to cheat America. And our multi pronged strategy basically involves, first of all, the President signed a new executive order last month that dramatically increases the teeth that Customs and Border has in terms of cracking down on this kind of transshipment. So that's number one. Number two, we've also arming them with this detective border. And by the way, we're hitting like over 95% hit rates in terms of accuracy, in terms of identifying transshippers, and that's off the charts. And then the third part of this approach we take is with the United States Trade representative. Every deal that we make, and we're making a lot of good deals for America, has a very strong transshipment provision in it. So we're going to put a stop to that. And countries are going to understand that very quickly that if they cheat, we'll catch them. And if we catch them, then they'll pay a very heavy price.

[Bloomberg Interviewer]

Peter, we're up against the clock.

[Peter Navarro]

Won't do it.

[Bloomberg Interviewer]

And I just want to squeeze this in. Why has the overcapacity 301 not been published yet?

[Peter Navarro]

I don't see Jameson Greer on the set. He'll come here any time you.

[Bloomberg Interviewer]

Well, he's your colleague.

[Peter Navarro]

I'll tell you this. I'll tell, I can tell you this. We are doing an amazing amount of 300 ones. At the same time, we're doing an amazing amount of trade deals and we are moving in Trump time and we're getting stuff done. And even as the news of the day is we're having to refund tariffs over here because of the Supreme Court decision. What that decision did was basically ratify the legality of 301, 232. We've got section 122, 115 day, 10% tariff in place. And tariffs are a very important part of the American tradition in terms of promoting our economic and national security. So again, everybody out there in Bloomberg land, you'll find this really interesting as a document, and it's really a window into the world as to how the financial system, the trading system is adapting in some sense and in some sense very bad ways to a tariff regime. But we will defend American business, we will defend American jobs, and we're stopping the great transshipment scam. And I thank Bloomberg for debuting this today.

[Bloomberg Host Lisa]

Peter Navarro, thank you so much for spending the time with us at Senior White House Advisor.

[Francine Lacqua]

Next week on Leaders with Me, Francine Lacqua, I speak with Harvard Business School Professor Linda Hill about what CEOs need to know to be successful.

[Linda Hill]

It really is not about them. It is about the organization, about how

[Francine Lacqua]

to lead in the age of AI.

[Linda Hill]

That requires a lot of confidence and

[Francine Lacqua]

why great leaders embrace conflict.

[Linda Hill]

You need to amplify difference.

[Francine Lacqua]

Listen and watch Leaders the Podcast with me, Francine LaCqua, on Bloomberg TV or wherever you get your podcasts.