The United States Trade Representative (USTR) would be required to impose remedial measures to prevent subsidized, state-owned entities from evading U.S tariffs by setting up production in other countries under legislation led by U.S. House Budget Committee Chairman Jodey Arrington (R-TX).
The Axing Nonmarket Tariff Evasion (ANTE) Act, H.R. 3575, which Rep. Arrington sponsored on May 23 alongside three Republican original cosponsors, including U.S. Rep. Blake Moore (R-UT), would provide the USTR with an additional tool that would prevent tariff evasion in a proactive and targeted manner, according to a bill summary provided by the lawmakers.
“For far too long, adversaries like China have engaged in unfair trade practices, cheated the American economy, and cost the U.S. millions of jobs,” said Chairman Arrington. “The ANTE Act will stop highly-subsidized, state-owned businesses from using third countries as backdoors to evade President Trump’s tariffs and help ensure a level playing field for American producers and manufacturers.”
Specifically, H.R. 3575 would provide USTR with additional authority to investigate whether a planned or existing investment from a nonmarket economy, subject to Section 301 tariffs, into a third country, not subject to Section 301 tariffs, is established or being established to export to the U.S. and evade these tariffs.
If USTR determines that tariff evasion is occurring, it would have the ability to apply an existing Section 301 tariff on a nonmarket economy to the planned or existing investment in the third country, the summary says.
The measure has garnered support from the National Tooling and Machine Association, the Forging Industry Association, and the American Mold Builders Association.