Lubbock Times

House Budget Committee Chairman Jodey Arrington (TX-19) has introduced H.R. 9724, known as the Axing Nonmarket Tariff Evasion (ANTE) Act. The legislation aims to protect the American economy from nonmarket entities that use third countries to circumvent U.S. trade enforcement.

“For far too long, adversaries like China have cheated the American economy and cost the U.S. millions of jobs by utilizing unfair trade practices. President Trump took decisive action to curb this, but more still needs to be done,” said Chairman Arrington. “The Axing Non-Market Tariff Evasion (ANTE) Act would proactively stop foreign, state-owned businesses from using third countries as a backdoor to evade U.S. tariffs and bolster the American economy in the process.”

Philip K. Bell, President of the Steel Manufacturers Association, expressed support for the bill: “We appreciate Rep. Arrington’s leadership in introducing the Axing Non-Market Tariff Evasion Act. A strong domestic steel industry is necessary to support any of our country’s goals. China’s unfair trade practices are the number one threat to robust domestic production.” He added that due to China’s Belt and Road Initiative, their members are constantly combating dumping and trade cheating as China shifts production globally in response to U.S. actions.

James Warren from the Forging Industry Association also endorsed the legislation: “Chinese companies have become experts at tariff evasion, finding ways around U.S. tariffs in place to support manufacturing in America,” he said. “The Axing Nonmarket Tariff Evasion (ANTE) Act will proactively target tariff evasion as China uses third-party countries to undermine American manufacturing.”

The ANTE Act addresses a gap in current U.S. trade law by amending Section 301 of the Trade Act of 1974. It requires the U.S. International Trade Commission (USITC) to investigate if investments from nonmarket economies into third countries are intended to evade tariffs when exporting to the United States.

If USITC finds evidence of tariff evasion, it must notify either the Office of the U.S. Trade Representative (USTR) or Congress, who can then apply Section 301 tariffs on these investments even before they begin operations.

The legislation has garnered broad support from several industry groups including:

- National Council of Textile Organizations

- National Tooling and Machining Association

- American Mold Builders Association

- Precision Metalforming Association

The goal is for this act to help defend American businesses against entities attempting to bypass U.S. law through indirect means.