Referred to the House Committee on Ways and Means.
The bill adds a new section to the Trade Act of 1974 authorizing the U.S. Trade Representative (USTR) to investigate and impose remedial measures against "covered entities" that are owned, controlled by, or tied to a nonmarket economy country and that establish or plan production in third countries to evade duties imposed under section 301. The USTR may impose duties on goods produced in the third country equal to at least the section 301 duty, initiate inquiries on its own or at request, require interagency information sharing, and must justify decisions not to act to Congress.
Extent of support: liberals favor worker protection; conservatives worry about administrative overreach
Relative to its intended legislative type, this bill creates a substantive expansion of trade enforcement authority by authorizing the Trade Representative to investigate and impose remedial measures on entities that attempt to evade section 301 duties via third-country investments, and it provides several concrete definitions and timelines to operationalize that authority.
The bill adds a new section to the Trade Act of 1974 authorizing the U.S. Trade Representative (USTR) to investigate and impose remedial measures against "covered entities" that are owned, controlled by, or tied to a nonmarket economy country and that establish or plan production in third countries to evade duties imposed under section 301.
The USTR may impose duties on goods produced in the third country equal to at least the section 301 duty, initiate inquiries on its own or at request, require interagency information sharing, and must justify decisions not to act to Congress.
Measures remain while the underlying section 301 action is in effect or while the nonmarket economy country retains controlling interest; the bill defines covered entities and sets timelines for initiation and determinations.
Targeted enforcement proposal has some political appeal but faces opposition from affected businesses, international legal risks, and higher Senate difficulty.
Relative to its intended legislative type, this bill creates a substantive expansion of trade enforcement authority by authorizing the Trade Representative to investigate and impose remedial measures on entities that attempt to evade section 301 duties via third-country investments, and it provides several concrete definitions and timelines to operationalize that authority.
Extent of support: liberals favor worker protection; conservatives worry about administrative overreach
These are examples from the analysis, not a ranked list of the most-affected groups.
Extent of support: liberals favor worker protection; conservatives worry about administrative overreach
Likely supportive of a stronger tool to prevent tariff evasion that undermines U.S. manufacturing and workers.
Concerned about transparency, enforcement fairness, and effects on consumers and supply-chain labor and environmental standards.
Cautiously favorable to giving USTR a focused tool against tactical tariff evasion, but seeks clear standards, legal defensibility, and cost-benefit justification.
Wants strong oversight and interagency coordination.
Mixed: supports tough measures versus strategic economic competitors, but wary of expanding administrative power and imposing de facto taxes on U.S. businesses.
Concerned about market distortions and investor uncertainty.
Reached or meaningfully advanced
Reached or meaningfully advanced
Still ahead
Still ahead
Still ahead
Targeted enforcement proposal has some political appeal but faces opposition from affected businesses, international legal risks, and higher Senate difficulty.
The bill has not accumulated any surfaced votes yet.
Extent of support: liberals favor worker protection; conservatives worry about administrative overreach
Targeted enforcement proposal has some political appeal but faces opposition from affected businesses, international legal risks, and highe…
Relative to its intended legislative type, this bill creates a substantive expansion of trade enforcement authority by authorizing the Trade Representative to investigate and impose remedial measures on entities that at…
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