Report by Swati
Washington 13August
Republican US Senator Bernie Moreno of Ohio has urged the Trump administration to take stronger action against alleged illegal Chinese transshipment schemes, warning that such practices could cost the United States billions of dollars in tariff revenue and threaten American manufacturing jobs.In a letter to US Homeland Security Secretary Markwayne Mullin, Moreno alleged that Chinese manufacturers are using third countries to conceal the origin of goods, evade US tariffs and gain an unfair advantage over American businesses.Moreno described illegal transshipment as a deliberate trade-fraud scheme in which goods manufactured in China are routed through another country, given a new label or undergo limited processing before being shipped to the United States.The senator cited trade data showing a USD 112 billion gap between goods China reported exporting to the United States and the value recorded by US Customs and Border Protection as arriving in the country last year. He argued that the discrepancy could indicate that a significant share of Chinese shipments escaped tariff enforcement.Ohio Manufacturing Sector in Focus .Moreno also highlighted the potential impact on Ohio’s economy, particularly the automobile industry. According to his letter, the state’s auto-mobile sector supports more than 329,400 jobs and contributes approximately USD 41.43 billion to Ohio’s gross state product.He pointed to a January 2024 federal search at the Moraine, Ohio, plant of Harco Manufacturing Group, a US subsidiary of Chinese auto-parts manufacturer Qingdao Sunsong. Homeland Security Investigations executed the search warrant following investigations into allegations that the company circumvented Section 301 tariffs.The investigations reportedly alleged that products were moved through Thailand, where they underwent limited transformation before being shipped to the United States.Calls for Stronger Enforcement Moreno said he supports the Trump administration’s tariff policy but stressed that tariffs would be effective only if they are properly collected and enforced.He also acknowledged the Department of Homeland Security’s use of artificial intelligence to improve supply-chain visibility and called for an assessment of whether additional powers are needed to pursue tariff evaders.The senator argued that stronger enforcement is necessary to protect US manufacturers, preserve American jobs and prevent businesses from exploiting loopholes in the country’s trade laws.The developments highlight growing US scrutiny of supply-chain practices involving Chinese goods and the use of third-country routes to potentially circumvent American tariffs.
