US White Paper Names Kazakhstan Among 40+ Countries in China Tariff Evasion Scheme
This digest was compiled by AI from multiple sources — links to the originals are below.
The Trump administration has named Kazakhstan, Azerbaijan, Georgia, and Uzbekistan among more than 40 countries allegedly aiding China in evading US tariffs. The White House white paper, titled the Great Transshipment Scam, designates the four as Tier III states with weak-link advantages in transshipment networks. The report estimates the evasion costs the US Treasury between $40 billion and $303 billion annually.
Key Facts
- The White House white paper names over 40 countries, including Kazakhstan, Azerbaijan, Georgia, and Uzbekistan, as alleged accomplices in China's tariff evasion.
- Kazakhstan, Azerbaijan, Georgia, and Uzbekistan are designated as Tier III states, defined as smaller economies with specific weak-link advantages such as low-cost labor, free zones, and limited customs enforcement.
- Estimates of annual US Treasury losses from Chinese-led tariff evasion range from approximately $40 billion to $303 billion, depending on methodology.
- The four Central Asian and Caucasus states are all nodes in the emerging Middle Corridor trade network promoted by the United States and European Union.
- The white paper states that Azerbaijan and Georgia provide rail and dry-port transit, consolidation, and overland-to-maritime connections, but gives no specifics on Kazakhstan's and Uzbekistan's roles.
The White Paper
The White House document, titled the Great Transshipment Scam, assails China for mercantilist practices that run counter to World Trade Organization principles. It identifies countries aiding China's efforts to evade US trade restrictions, describes how Chinese-led networks operate, and outlines countermeasures being taken by the Trump administration. The report divides countries involved in tariff evasion into three categories, with Azerbaijan, Georgia, Kazakhstan, and Uzbekistan placed in Tier III. Tier III states are defined as smaller economies with lower absolute transshipment volumes but specific weak-link advantages, including low-cost labor, free zones, port or border access, bonded warehousing, niche assembly capacity, or limited customs enforcement.
Diplomatic Implications
The naming of Baku, Tbilisi, Astana, and Tashkent could complicate diplomatic relations at a time when US ties with all but Georgia have dramatically improved since Trump returned to the presidency in early 2025. Any US effort to tighten tariff enforcement could cause chagrin in foreign capitals that hampers the pursuit of US initiatives in other economic and geopolitical spheres. A US-brokered peace deal between Armenia and Azerbaijan remains to be finalized, and a top US diplomatic and economic priority in Central Asia is expanding access to the region's critical minerals. The four states are all nodes in the emerging Middle Corridor trade network, promoted by the United States and European Union as a mechanism to boost trade between Central Asia and the West.
Transshipment Network
The white paper notes the four states are also participants in Beijing's Belt and Road Initiative, adding that their involvement in tariff evasion can reinforce commercial dependencies created through that initiative. Azerbaijan and Georgia provide rail and dry-port transit, consolidation, and overland-to-maritime connections, according to the report. The report does not provide specifics about Kazakhstan's and Uzbekistan's roles in what it describes as China's Shadow Transshipment Network. Estimates on the amount that Chinese-led tariff evasion is costing the US Treasury range from approximately $40 billion to $303 billion annually, depending on the methodology and definition used.
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US White Paper Names Kazakhstan Among 40+ Countries in China Tariff Evasion Scheme
