Sponsors (2)
The bill strengthens tools and deadlines to block circumvention of section 301 tariffs—helping domestic producers and speeding enforcement—at the cost of higher import prices for consumers, broader compliance risks for businesses, and increased potential for trade retaliation.
Import-competing U.S. producers (including many small domestic manufacturers) gain protection because the bill lets authorities treat third‑country goods that are made to evade existing section 301 duties as subject to equivalent duties.
U.S. taxpayers benefit from faster enforcement because the bill gives USTR and the President clear, time-bound (45- and 180-day) deadlines to investigate and act on alleged circumvention.
State governments and Congress gain more transparency and oversight because USTR must report to Congress, including social and economic impact justifications, when it decides not to impose remedial measures.
U.S. importers and consumers (including small businesses and households) could face higher prices if the bill leads to duties on third‑country goods equivalent to existing section 301 tariffs.
Financial institutions and many businesses (including small firms) may face compliance uncertainty and increased litigation because the bill’s broad definition of 'covered entity' (≥25% foreign ownership, co‑investment, derivatives, or certain contracts) could capture a wide range of arrangements.
Taxpayers and U.S. exporters could be exposed to increased trade tensions or retaliatory measures because the bill authorizes unilateral remedial action under Presidential direction.
Based on analysis of 2 sections of legislative text.
Authorizes USTR to investigate and impose duties on entities tied to designated nonmarket economies that use third‑country investments or arrangements to evade Section 301 tariffs.
Official title: 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 22, 2025 by James E. Banks · Last progress May 22, 2025
Creates a new trade-enforcement authority letting the U.S. Trade Representative investigate and block schemes by entities tied to nonmarket-economy countries that try to evade Section 301 tariffs by routing investment or ownership through third countries. It sets rules for who may request inquiries, definitions of covered entities and control, timelines for decisions, information sharing with federal agencies, limits on how long remedies may last, and a congressional justification requirement if no measures are imposed. The authority allows the USTR, and ultimately the President if directed, to impose remedial measures (including duties at least equal to the original Section 301 duty) against identified covered entities for the duration of the Section 301 action or the foreign controlling interest, whichever ends first. The provision is added to the Trade Act of 1974 and updates the table of contents accordingly.