The legislation aims to enhance the authority of the United States International Trade Commission (USITC) under Section 301 of the Trade Act of 1974.
It allows the USITC to investigate investments by entities controlled by non-market economy countries in third countries to evade U.S. tariffs.
If the USITC finds evidence of tariff evasion, it can recommend trade remedies to the President or Congress equivalent to the value of the tariffs imposed.
Defines “non-market economy countries” based on specific lists from the Department of Commerce and the Office of the U.S. Trade Representative.
Investigations can be initiated upon request from industry petitioners, the Office of the U.S. Trade Representative, or Congress.
The USITC must determine the relevance of an investigation within 45 days and whether a remedy is warranted within 180 days.
The USITC can affirmatively determine tariff evasion if a third-country investment is linked to a non-market economy entity and involves goods subject to Section 301 tariffs.
If a remedy is recommended, the President can impose retaliatory measures against the third-country investment or recommend broader import actions to Congress.
A joint resolution of approval from Congress is required for the President’s proposed actions to take effect, with specific procedures outlined for both the House and Senate.
Remedies enacted can last between three to eight years, with a review process one year before expiration to assess the need for continuation.
