Ohio Senators Challenge China’s Tax Evasion via Tariff Moratorium
Two Republican senators from Ohio have claimed that Chinese companies evaded billions in taxes through a controversial tariff moratorium during the Biden administration, which was later deemed illegal. They are now urging the Department of Homeland Security to send the bill to China.
In 2022, the Biden administration halted tariffs on solar panels from Southeast Asia—many of which contain components produced by Chinese firms. However, the U.S. Court of International Trade found that the legal basis used to initiate this moratorium does not apply to solar panels, making it illegal.
Senator Jon Husted expressed concerns in a recent interview, stating, “China has a strategy. They have government-subsidized business sectors, like solar panels, and aim to flood the global market to put others out of business. This would create a dangerous dependency on China for energy generation.” He believes this undermines not just the U.S. but global stability as well.
In a letter to the Department of Homeland Security, Husted and fellow senator Bernie Moreno argued that Chinese solar companies should be mandated to repay the import duties they avoided due to the moratorium. They described the moratorium as a measure that helped Chinese manufacturers exploit loopholes in U.S. trade laws, taking billions from the U.S. economy.
The senators’ letter emphasized that the total unpaid tariffs could amount to billions, largely due to Chinese state-backed firms that flooded the market with artificially cheap solar products, posing risks to national security and domestic manufacturing.
The countries affected by the tariff suspension—Malaysia, Cambodia, Thailand, and Vietnam—are home to solar manufacturers that have been accused of circumventing U.S. trade laws. By 2023, approximately 84% of solar panels in the United States are expected to be imported.
Husted estimated that Chinese companies owe the U.S. around $67 billion in unpaid tariffs as a result of the revoked grace period.
China’s dominance in solar panel manufacturing has stirred considerable debate. Critics worry that relying too heavily on Chinese imports could jeopardize U.S. energy independence. Additionally, human rights advocates have raised alarms over allegations of forced labor in China’s solar industry.
The Biden administration initiated the tariff suspension in 2022 amid worries that investigations into the circumvention of U.S. antidumping laws would disrupt solar supply chains and hinder clean energy initiatives.
Husted and Moreno noted that Customs and Border Protection, part of DHS, conducted an investigation and found that “none of the persons admitted under the suspension were legitimately eligible for relief.” They argued that CBP holds the “legal authority” to retroactively impose duties and interest.
While a DHS spokesperson confirmed receipt of the senators’ letter, they refrained from commenting on whether the agency would act on their requests. They acknowledged the senators’ efforts to address the Biden administration’s solar tariff moratorium and expressed intent to work with them on the issue.
Furthermore, Husted and Moreno are pushing for CBP to release an internal review, retroactively charge companies that benefitted from the tariff suspension, and disclose how much each importer owes.
In their letter, they asserted, “Enforcing these obligations is essential for fairness, the rule of law, and the credibility of U.S. trade enforcement.” They were clear in emphasizing the United States’ commitment to countering the Chinese Communist Party’s attempts to dominate markets with low-cost products, which they believe are bolstered by the Biden administration’s policies.
