ANTE Act
Key claim: The ANTE Act authorizes the USTR to investigate covered entities linked to nonmarket economy countries that establish third-country investments to evade Section 301 tariffs and to impose equivalent remedial tariffs on associated goods.
Abstract
(HR3575 · 119th Congress) Axing Nonmarket Tariff Evasion Act or the ANTE Act This bill authorizes the Office of the U.S. Trade Representative (USTR) to investigate and take remedial action against covered entities that evade or attempt to evade duties (i.e., tariffs) that were imposed on nonmarket economy countries (e.g., China) by investing in other countries. Under the bill, a covered entity (e.g., business) (1) is owned, controlled, subject to the jurisdiction or direction of, or operated by a nonmarket economy country; and (2) includes an entity for which, on any date during the most recent 12-month period, at least 25% of the equity interests in such entity were held directly or indirectly by one or more entities organized under the laws of a nonmarket economy country. Currently, Section 301 of the Trade Act of 1974 allows the USTR to impose tariffs in response to actions by foreign countries that violate U.S. rights under international trade agreements or that burden or restrict U.S. commerce in unjustifiable, unreasonable, or discriminatory ways. In 2018, for example, the USTR used Section 301 to impose tariffs on many imports from China. This bill allows the USTR to investigate whether a covered entity is establishing or has established investments (e.g., manufacturing operations) in another country that is not subject to Section 301 tariffs in order to evade those tariffs. Upon an affirmative determination, the USTR may impose certain remedial measures, such as imposing a tariff equivalent to the original tariff on goods associated with the nonmarket economy country. Latest action (2025-05-23): Referred to the House Committee on Ways and Means.
Why this matters
The ANTE Act would expand USTR’s Section 301 toolkit to reach goods produced via third-country investments by nonmarket-economy-linked entities, closing a common transshipment/rerouting workaround. For importers this raises compliance and supply-chain diligence costs on suppliers in jurisdictions used as pass-throughs; for exporters in nonmarket economies it narrows evasion pathways; and consumer prices on covered goods could rise if equivalent remedial tariffs are imposed.