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Under the Trump Administration, Chinese-manufactured imports were subject to large tariffs. China countered with a multi-pronged strategy to evade U.S. tariffs and trade restrictions. 

Recently, Chinese manufacturers have exploited a loophole in U.S. trade law by shifting manufacturing facilities to third countries with favorable U.S. trade terms, such as Mexico, Vietnam, and Malaysia. This “country hopping” has allowed Chinese companies to evade tariffs and flood the U.S. market with cheap goods.

U.S. Senator Marco Rubio (R-FL) introduced the Stopping Adversarial Tariff Evasion Act to close this loophole and ensure tariffs apply to goods manufactured by a foreign adversary no matter where the production happens. 

• “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.

• “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.” – Senator Rubio

Flashback … Senator Rubio introduced a report detailing the successes and failures of Communist China’s “Made in China 2025” industrial policy, including the country’s domination of supply chains. He also introduced legislation to tackle “country hopping” in auto manufacturing.