The White House issued a report titled "The Great Transshipment Scam" on August 13, 2026, naming Singapore among 40 economies used by Chinese exporters to evade US tariffs through illegal transshipments [1, 2, 3, 4, 5, 6]. The report estimates that such tariff-evading transshipments have cost US customs revenue between $40 billion and $303 billion [1, 2, 3, 4, 5, 6].
Singapore is placed in Tier 3 of the identified countries, described as a "small, opportunistic Chinese target" with lower volumes but exploitable weak points in illegal transshipment [1, 2, 3, 5, 6]. The report clarifies it does not accuse all trade routed through these countries of being illegal, noting some shifts reflect legitimate changes in production and sourcing [1, 2, 3, 4, 5, 6].
The US administration plans to deploy an AI-powered system called "Detective Border" to enhance enforcement against these trade abuses [1, 2, 3, 4, 5, 6]. In June 2025, Singapore Customs reminded traders of the importance of accurate country of origin declarations [7].
On August 14, Singapore Customs charged a local company and three individuals for allegedly falsely declaring product origins to the US to circumvent import duties [7]. The next day, Singapore’s Ministry of Trade and Industry (MTI) reaffirmed its commitment to trade compliance, stating, "Singapore’s economic competitiveness is underpinned by strong rule of law, transparent regulations, zero tolerance for fraud, corruption, and criminal activities," adding that it "will not hesitate to take firm and decisive action against any violation of our laws" [7].
In August 2025, the US had announced a 40 percent additional tariff on goods found to have been illegally transshipped to evade duties [1, 2, 3, 4, 5, 6]. The White House declared, "The message to the world is simple. The age of untraceable illegal transshipment is over" [1].
Authorities are expected to closely monitor compliance and enforcement actions following the recent charges and statements.
