Stopping Adversarial Tariff Evasion Act

The Stopping Adversarial Tariff Evasion Act would amend existing trade laws to broaden how the U.S. applies tariffs and trade restrictions to products from designated foreign adversary countries. Currently under committee consideration, the bill would treat any product produced, manufactured, or finally assembled by a company that is at least 25% owned by a foreign adversary entity as if it originated in that adversary country, even if the product is physically made elsewhere. This is intended to close what supporters describe as a loophole where companies relocate manufacturing to other countries to avoid tariffs, a practice sometimes called "country hopping."

The bill specifically targets China, Russia, Iran, North Korea, Cuba, and Venezuela. It would give the President and U.S. trade representatives broader authority to apply tariffs and national security-related trade measures to a wider range of products with connections to these countries. The bill defines a "foreign adversary party" broadly to include government agencies, entities organized under the adversary country's laws, entities headquartered in those countries, and entities involved in specific industrial or military strategies. If enacted, the bill could increase tariffs on imported goods and potentially raise prices for consumers on products like automobiles, solar panels, semiconductors, and other items if they are made by companies with ownership ties to these countries.