Sponsors (6)
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
The bill strengthens U.S. enforcement tools to close evasion loopholes and protect domestic producers, but does so at the cost of higher potential prices for consumers, legal uncertainty for some firms, and a risk of retaliatory trade conflict.
Domestic manufacturers and small businesses: Imports from targeted third‑country producers would face duties equal to section 301 duties, reducing unfair price competition and helping protect U.S. producers and jobs.
Taxpayers and federal enforcement: Gives USTR additional tools to detect and block evasion schemes, preserving the effectiveness of existing trade remedies and preventing revenue loss or loopholes.
State governments and financial institutions: Requires interagency information sharing, speeding investigations and improving coordination among agencies handling trade‑remedy enforcement.
U.S. importers and consumers (including middle‑class families and taxpayers): Could face higher prices if duties are imposed on third‑country goods, increasing costs for households and businesses that rely on those imports.
Small businesses and financial institutions: The 25% ownership threshold and broad definitions of 'control' could sweep in many firms, creating legal uncertainty and exposing otherwise lawful entities to duties and compliance costs.
Small businesses and investors: Allowing prospective (pre‑production) actions combined with tight procedural deadlines risks rushed or erroneous determinations that could harm lawful investors and chill investment.
Based on analysis of 2 sections of legislative text.
Gives USTR power to investigate and impose duties on third‑country investments used by nonmarket economies to evade section 301 tariffs.
Creates a new Trade Act authority letting the U.S. Trade Representative (USTR) investigate and block attempts by nonmarket-economy countries to avoid existing section 301 duties by shifting production or investment to third countries. It sets timelines for initiating inquiries and making determinations, defines covered entities and control thresholds, requires federal agency cooperation, and ties any imposed remedies to the underlying section 301 action. The measure gives USTR the power to impose remedial duties (at least as large as the underlying section 301 duty) on entities that are controlled by or effectively owned by nonmarket economies and that use third-country investments to evade U.S. tariffs. It also requires USTR to explain to Congress if it decides not to impose remedies after finding evasion is occurring or likely to occur.