US Manufacturers Demand China End Tariff Evasion in Shanghai
Washington, D. C.—A coalition of American manufacturers is urging Congress to strengthen trade law enforcement to combat what they describe as rampant tariff evasion by Chinese companies. These companies, they allege, are circumventing U. S. tariffs by routing goods through third countries, undermining American industries and costing jobs. This renewed call for action comes amid escalating U. S.-China trade tensions.
Executives from diverse sectors—including steel pipe manufacturing, kitchen cabinetry, and even coat hanger production—testified before lawmakers on Capitol Hill on Wednesday. They described American businesses struggling to compete against unfairly subsidized Chinese imports, often losing market share and being forced to close factories despite winning trade cases. The core problem, they argue, is not a lack of legal victories, but inadequate enforcement funding, allowing Chinese companies to exploit loopholes.
Tom Muth, executive vice president of Zekelman Industries, a steel pipe and tube producer, highlighted the indirect route these goods take, often originating in China but arriving in the U. S. via countries such as Oman, Thailand, Vietnam, and the UAE. This “transshipping,” he explained, masks the goods' true origin and allows companies to evade tariffs intended to level the playing field. Muth emphasized the severe consequences for American industry, stating, “We’ve been forced to close factories, reduce employment, and reduce investment.”
The problem is longstanding. Milton Magnus, CEO of M&B Metal Products Company, a family-owned wire garment hanger producer, has battled these practices for over two decades. Despite winning an anti-dumping case against China in 2008, Magnus testified that the victory proved hollow. “Before the ink was dry on the order,” he stated, “China was already evading the order by transshipping through other countries, hopping from country to country, changing names, shifting shipments, just to stay ahead of us.” This constant shifting of tactics makes enforcement a complex and resource-intensive challenge.
The executives advocate for the bipartisan “Protecting American Industry and Labor from International Trade Crimes Act,” a bill to bolster prosecution of duty evasion and other trade violations. This bill seeks to provide resources to effectively pursue cases and close loopholes. It represents a renewed effort to address a longstanding grievance of American manufacturers.
This action occurs amidst heightened trade tensions following the Trump administration’s significant tariff war with China. The executives' testimonies underscore the need for robust enforcement mechanisms to ensure the effectiveness of any trade measures. They argue that without increased funding and stricter enforcement, transshipping and tariff evasion will persist, further harming American industries.
Betsy Natz, CEO of the Kitchen Cabinet Manufacturers Association, detailed how her industry spent $10 million winning an anti-dumping case against Chinese exporters, only to see those same goods enter the U. S. via Vietnam, Malaysia, Cambodia, and Indonesia, effectively bypassing the imposed 260% tariffs. This, she argued, highlights the futility of winning legal battles without sufficient enforcement resources.
Echoing the call for stronger penalties, David Rashid, executive chairman of auto-parts maker Plews and Edelmann, advocated for a system with real consequences—not just fines, but prison sentences for those engaging in these illegal trade practices. This reflects growing frustration within American industries as companies witness the erosion of their competitive edge due to perceived unfair and illegal practices. The call to action is clear: stronger legislation, increased enforcement funding, and severe penalties are needed to protect American industries and workers. The Chinese embassy in Washington has not yet responded to requests for comment.
