House GOP's Bold Strike Against China's Trade Deception Narrowly Passes

Paul Riverbank, 5/23/2025House Republicans narrowly pass bill to combat China's creative tactics for avoiding U.S. trade tariffs.

I've watched dozens of trade bills move through Congress, but the Axing Nonmarket Tariff Evasion (ANTE) Act stands out. Not just for its ambitious scope, but for the peculiar way it came to pass – including one congressman literally sleeping through the final vote. (Yes, really. Rep. Garbarino of New York dozed off in the back, much to Speaker Johnson's apparent amusement.)

The heart of the matter is what trade experts call "place-of-origin washing" – a practice that's become Beijing's favorite workaround for U.S. tariffs. Chinese manufacturers have gotten remarkably creative, setting up shop in neighboring countries or simply slapping new labels on their products to dodge the 30% tariff wall.

Texas Republican Jodey Arrington, who chairs the House Budget Committee, isn't mincing words about the threat. "For far too long, adversaries like China have engaged in unfair trade practices," he told Fox News Digital. But here's what's interesting: while everyone agrees on the problem, the solution has sparked an unexpected debate about America's economic future.

The bill package goes well beyond just closing tariff loopholes. Buried in the details are significant changes to tax credits and SALT deductions that could reshape everything from manufacturing to energy policy. Some of these provisions have industry insiders worried, particularly those betting big on electric vehicles and renewable energy.

Having covered trade policy for years, I'm struck by how this legislation reflects a broader shift in Republican thinking. It's not just about confronting China anymore – it's about fundamentally restructuring America's industrial policy. The question is whether Senate leadership will share this vision.

The current law requires products to undergo "substantial transformation" in a country to claim origin there. It's a standard that's proved about as solid as wet paper in practice. While the new legislation promises stricter enforcement, anyone who's watched China adapt to previous restrictions knows Beijing will likely find new creative workarounds.

What makes this particularly fascinating is the timing. With an election year approaching and economic anxiety running high, both parties are desperate to show they're tough on China while protecting American jobs. But the razor-thin margin in the House suggests we're far from consensus on how exactly to achieve that.

The drama isn't over – the bill still faces a challenging path through the Senate. But regardless of its fate, this episode highlights an uncomfortable truth: in today's global economy, drawing clear lines between domestic and international economic policy has become nearly impossible.

House Republicans are taking aim at China's creative tariff dodging, but their latest legislative package reveals deeper fault lines in American trade policy. The razor-thin 215-214 vote tells us more about Congress's struggle to balance competing interests than it does about partisan unity on China policy.I've watched dozens of trade bills move through Congress, but the Axing Nonmarket Tariff Evasion (ANTE) Act stands out. Not just for its ambitious scope, but for the peculiar way it came to pass – including one congressman literally sleeping through the final vote. (Yes, really. Rep. Garbarino of New York dozed off in the back, much to Speaker Johnson's apparent amusement.)The heart of the matter is what trade experts call "place-of-origin washing" – a practice that's become Beijing's favorite workaround for U.S. tariffs. Chinese manufacturers have gotten remarkably creative, setting up shop in neighboring countries or simply slapping new labels on their products to dodge the 30% tariff wall.Texas Republican Jodey Arrington, who chairs the House Budget Committee, isn't mincing words about the threat. "For far too long, adversaries like China have engaged in unfair trade practices," he told Fox News Digital. But here's what's interesting: while everyone agrees on the problem, the solution has sparked an unexpected debate about America's economic future.The bill package goes well beyond just closing tariff loopholes. Buried in the details are significant changes to tax credits and SALT deductions that could reshape everything from manufacturing to energy policy. Some of these provisions have industry insiders worried, particularly those betting big on electric vehicles and renewable energy.Having covered trade policy for years, I'm struck by how this legislation reflects a broader shift in Republican thinking. It's not just about confronting China anymore – it's about fundamentally restructuring America's industrial policy. The question is whether Senate leadership will share this vision.The current law requires products to undergo "substantial transformation" in a country to claim origin there. It's a standard that's proved about as solid as wet paper in practice. While the new legislation promises stricter enforcement, anyone who's watched China adapt to previous restrictions knows Beijing will likely find new creative workarounds.What makes this particularly fascinating is the timing. With an election year approaching and economic anxiety running high, both parties are desperate to show they're tough on China while protecting American jobs. But the razor-thin margin in the House suggests we're far from consensus on how exactly to achieve that.The drama isn't over – the bill still faces a challenging path through the Senate. But regardless of its fate, this episode highlights an uncomfortable truth: in today's global economy, drawing clear lines between domestic and international economic policy has become nearly impossible.