The Coalition for a Prosperous America (CPA) strongly supports enhanced enforcement measures in direct response to trade violations and concerns highlighted in the U.S. Trade Representative’s (USTR) 2025 National Trade Estimate (NTE) Report. The NTE report specifically identifies significant barriers and illicit trade practices, particularly involving China, impacting the solar, automotive, and steel industries, underscoring the urgent need for robust U.S. enforcement to address transshipment and tariff evasion.
Solar Sector Overcapacity and Transshipment
The NTE Report documents substantial overcapacity in China’s solar sector, driven by aggressive industrial policies and extensive government subsidies. The report states Chinese manufacturers produce solar products at “three to four times the level of global demand,” severely undercutting U.S. producers. Additionally, it highlights investigations into Chinese solar products entering the U.S. market through transshipment via Vietnam, Malaysia, Thailand, and Cambodia, indicating deliberate tariff evasion. CPA strongly supports strengthening U.S. enforcement of rules of origin and implementing comprehensive investigations to effectively close these tariff-evasion loopholes.
Automotive Sector Risks
In the automotive sector, the NTE Report emphasizes China’s deliberate state intervention aimed at dominating global electric vehicle (EV) markets. Highlighting China’s strategic targeting of Mexico for potential manufacturing investments, the report underscores concerns over Chinese automakers potentially seeking tariff-free entry into the U.S. market under USMCA. This poses significant risks of tariff evasion, threatening American automotive jobs and economic security. CPA advocates intensified enforcement of USMCA provisions, including enhanced customs inspections, to ensure Chinese companies do not exploit North American supply chains to evade U.S. tariffs.
Steel Industry Overproduction and Tariff Evasion
Regarding steel, the NTE Report details China’s persistent overproduction, noting annual steel output consistently exceeding one billion metric tons, substantially above domestic needs. This massive surplus continues to depress global market prices. The report specifically highlights concerns about Mexico and Vietnam emerging as transit points for Chinese steel products entering the U.S. through minimal processing and fraudulent origin claims. CPA strongly endorses cooperative enforcement actions such as “melted and poured” certification requirements with Mexico and heightened customs scrutiny with Vietnam to combat transshipment and protect tariff integrity.
Central Issue: Transshipment and Enforcement Solutions
Transshipment is explicitly identified in the NTE Report as a critical issue, highlighting how Chinese exporters frequently reroute goods through ASEAN countries to circumvent U.S. tariffs. CPA supports increased resources, advanced customs technology, and improved verification practices to effectively detect and prevent fraudulent import practices.
CPA fully endorses intensified bilateral enforcement cooperation with Mexico and Vietnam and stronger origin-verification commitments from ASEAN partners, consistent with concerns outlined in the NTE Report. These actions are essential for safeguarding American industries and ensuring fairness in global trade. The NTE Report clearly underscores critical areas where enhanced U.S. policy measures, legislative actions, and international collaboration are required to effectively address ongoing trade violations.
Conclusion: Commitment to Robust Enforcement
Ultimately, CPA emphasizes, consistent with issues highlighted in the 2025 NTE Report, that robust trade enforcement is crucial to protecting American economic interests, reinforcing domestic supply chains, and ensuring fair competition globally. CPA remains dedicated to advocating for strong U.S. trade enforcement policies to secure America’s long-term economic prosperity.
MADE IN AMERICA.
CPA is the leading national, bipartisan organization exclusively representing domestic producers and workers across many industries and sectors of the U.S. economy.
CPA Endorses Enhanced Enforcement Actions Following Concerns Raised in USTR’s 2025 National Trade Estimate Report
The Coalition for a Prosperous America (CPA) strongly supports enhanced enforcement measures in direct response to trade violations and concerns highlighted in the U.S. Trade Representative’s (USTR) 2025 National Trade Estimate (NTE) Report. The NTE report specifically identifies significant barriers and illicit trade practices, particularly involving China, impacting the solar, automotive, and steel industries, underscoring the urgent need for robust U.S. enforcement to address transshipment and tariff evasion.
Solar Sector Overcapacity and Transshipment
The NTE Report documents substantial overcapacity in China’s solar sector, driven by aggressive industrial policies and extensive government subsidies. The report states Chinese manufacturers produce solar products at “three to four times the level of global demand,” severely undercutting U.S. producers. Additionally, it highlights investigations into Chinese solar products entering the U.S. market through transshipment via Vietnam, Malaysia, Thailand, and Cambodia, indicating deliberate tariff evasion. CPA strongly supports strengthening U.S. enforcement of rules of origin and implementing comprehensive investigations to effectively close these tariff-evasion loopholes.
Automotive Sector Risks
In the automotive sector, the NTE Report emphasizes China’s deliberate state intervention aimed at dominating global electric vehicle (EV) markets. Highlighting China’s strategic targeting of Mexico for potential manufacturing investments, the report underscores concerns over Chinese automakers potentially seeking tariff-free entry into the U.S. market under USMCA. This poses significant risks of tariff evasion, threatening American automotive jobs and economic security. CPA advocates intensified enforcement of USMCA provisions, including enhanced customs inspections, to ensure Chinese companies do not exploit North American supply chains to evade U.S. tariffs.
Steel Industry Overproduction and Tariff Evasion
Regarding steel, the NTE Report details China’s persistent overproduction, noting annual steel output consistently exceeding one billion metric tons, substantially above domestic needs. This massive surplus continues to depress global market prices. The report specifically highlights concerns about Mexico and Vietnam emerging as transit points for Chinese steel products entering the U.S. through minimal processing and fraudulent origin claims. CPA strongly endorses cooperative enforcement actions such as “melted and poured” certification requirements with Mexico and heightened customs scrutiny with Vietnam to combat transshipment and protect tariff integrity.
Central Issue: Transshipment and Enforcement Solutions
Transshipment is explicitly identified in the NTE Report as a critical issue, highlighting how Chinese exporters frequently reroute goods through ASEAN countries to circumvent U.S. tariffs. CPA supports increased resources, advanced customs technology, and improved verification practices to effectively detect and prevent fraudulent import practices.
CPA fully endorses intensified bilateral enforcement cooperation with Mexico and Vietnam and stronger origin-verification commitments from ASEAN partners, consistent with concerns outlined in the NTE Report. These actions are essential for safeguarding American industries and ensuring fairness in global trade. The NTE Report clearly underscores critical areas where enhanced U.S. policy measures, legislative actions, and international collaboration are required to effectively address ongoing trade violations.
Conclusion: Commitment to Robust Enforcement
Ultimately, CPA emphasizes, consistent with issues highlighted in the 2025 NTE Report, that robust trade enforcement is crucial to protecting American economic interests, reinforcing domestic supply chains, and ensuring fair competition globally. CPA remains dedicated to advocating for strong U.S. trade enforcement policies to secure America’s long-term economic prosperity.
MADE IN AMERICA.
CPA is the leading national, bipartisan organization exclusively representing domestic producers and workers across many industries and sectors of the U.S. economy.
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