The White House has released a new report accusing Canada of being among the countries China uses to avoid U.S. tariffs by routing its exports through third countries in a practice known as Transshipment.

The report identified around 40 countries that it described as part of a “shadow transshipment network” for Chinese exports.

Among the countries mentioned in the White House report are Canada, Mexico, the European Union, India, Japan and South Korea.

According to the report, China uses trade routes and tariff arrangements in other countries to export its products to the United States.

Through this practice, China can reduce the tariffs imposed on its goods.

The report said the United States is losing between US$19 billion and US$26 billion annually in tariff revenue as a result of China-related transshipment operations.

U.S. Customs and Border Protection (CBP) confirmed that it has begun using artificial intelligence in a pilot program to detect the rerouting of goods and attempts to circumvent U.S. tariffs.

The White House report comes as trade negotiations between the Canadian and U.S. governments continue.