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Friday, November 15, 2024

Rubio introduces bill targeting tariff evasion by Chinese manufacturers

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Senator Marco Rubio | Official U.S. House headshot

Senator Marco Rubio | Official U.S. House headshot

U.S. Senator Marco Rubio (R-FL) has introduced the Stopping Adversarial Tariff Evasion Act, aimed at closing a loophole in U.S. trade law that allows Chinese manufacturers to evade tariffs by shifting production to third countries with favorable trade terms, such as Mexico, Vietnam, and Malaysia.

Under the Trump Administration, large tariffs were imposed on Chinese-manufactured imports. In response, China developed strategies to circumvent these tariffs and trade restrictions. Recently, Chinese companies have been able to bypass U.S. tariffs through "country hopping," relocating manufacturing facilities to other nations.

Senator Rubio emphasized the need for this legislation by stating: “America’s manufacturing sector has faced growing challenges from unfair foreign competition, particularly from Communist China. The Chinese Communist Party has eroded our industrial base for decades, and now it is bypassing the laws put in place to halt it. My legislation would ensure goods produced by our adversaries are treated as such, no matter where they’re made.”

He further added: “We must protect our industries and workers from these predatory practices before it’s too late. America cannot afford to surrender its economic future to Beijing.”

Previously, Senator Rubio introduced a report outlining the successes and failures of China's "Made in China 2025" industrial policy and its impact on global supply chains. He also proposed legislation addressing "country hopping" in auto manufacturing.

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