Lubbock’s Arrington Takes Aim at Chinese Trade Loopholes with New Tariff Legislation

U.S. Representative Jodey Arrington, who serves as House Budget Chairman and represents Texas' 19th Congressional District, has introduced new legislation aimed at tightening U.S. trade regulations. The bill, titled the Axing Nonmarket Tariff Evasion (ANTE) Act, is designed to prevent state-backed companies—particularly those from countries like China—from avoiding U.S. tariffs by moving production to other nations.

What's in the Legislation?

The legislation seeks to address what some lawmakers view as a growing trade loophole: the ability of state-owned enterprises to relocate manufacturing to countries not subject to certain tariffs, then export goods to the U.S. under a different label. This practice has drawn criticism from policymakers who believe it undermines the effectiveness of existing trade policies.

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Arrington said via press release:

President Trump’s reciprocal trade policy was an attempt to address global trade imbalances. This legislation builds on that effort by targeting foreign entities that seek to bypass tariffs using third-party countries.

Senator Jim Banks (R-IN) is sponsoring companion legislation in the U.S. Senate. Both lawmakers say the bill is intended to support domestic manufacturers and prevent tariff evasion that could affect U.S. jobs and economic competitiveness.

Banks said via press release:

Countries like China have developed strategies to exploit weaknesses in our trade laws. This legislation aims to close those gaps and create more consistent enforcement.

Who's Supporting and Who's Against the Bill?

Supporters of the bill, including trade organizations like the National Tooling and Machining Association, argue that stricter oversight is necessary to protect U.S. industries. “China and other non-market economies have become experts at finding loopholes to undermine our manufacturing base,” said NTMA President Roger Atkins.

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Critics of similar measures have cautioned that overly broad trade restrictions could lead to unintended consequences, such as supply chain disruptions or increased consumer prices. At the time of writing, no official opposition to the ANTE Act has been voiced, but debate is expected as the bill moves forward.

The full text of the ANTE Act has not yet been released, and the legislation is in its early stages. As Congress continues to address trade policy, the bill is likely to spark discussion on how best to balance economic security with global market dynamics.