Sponsors (6)
Allows USTR to investigate and impose duties on entities tied to nonmarket-economy countries that use third-country investments or arrangements to evade section 301 tariffs.
The bill tightens tools and information-sharing to stop evasion and protect U.S. firms, but those protections raise the likelihood of higher prices, broader legal exposure and uncertainty for firms, risks of rushed enforcement, and potential foreign retaliation.
Small U.S. firms and domestic producers face less unfair competition because imports from targeted third‑country producers can be hit with duties equal to existing section 301 duties.
USTR gains new enforcement authorities to detect and block evasion schemes, preserving the effectiveness of existing trade remedies and reducing long-term costs to taxpayers from unfair imports.
State governments, financial institutions, and investigators can operate faster and more effectively because the bill requires interagency information sharing, improving investigatory speed and coordination.
U.S. importers and consumers (including middle‑class families and taxpayers) could face higher prices if duties are imposed on third‑country goods.
The bill's 25% ownership and broad 'control' definitions could sweep in many firms, creating legal uncertainty and higher compliance costs for small businesses and financial institutions.
Prospective enforcement actions and tight statutory deadlines risk rushed or preemptive determinations that could harm lawful investors and produce unfair enforcement outcomes.
Based on analysis of 2 sections of legislative text.
Official title: To amend the Trade Act of 1974 to authorize the United States Trade Representative to impose remedial measures with respect to certain entities that evade or may attempt to evade duties imposed with respect to nonmarket economy countries, and for other purposes.
Introduced May 23, 2025 by Jodey Cook Arrington · Last progress May 23, 2025
Authorizes the U.S. Trade Representative (USTR) to investigate and block attempts by firms tied to nonmarket-economy countries to avoid existing section 301 duties by shifting production or investment to third countries. If USTR finds evasion, it may impose remedial measures — including duties at least equal to the original section 301 duty — on the ‘covered entities’ responsible for the evasion. The bill sets timelines and procedures for inquiries (45-day decision to open an inquiry; 180 days to reach a determination), requires federal agencies to provide requested information, defines covered entities and control thresholds (including a 25% ownership trigger), and ties the duration of remedies to the underlying section 301 action or continued controlling interest by the nonmarket economy country.