Lawmakers Scrutinize Auto Parts Retailers Over Tariff Evasion Allegations

A bipartisan group of lawmakers has questioned major auto parts retailers about their procurement from Qingdao Sunsong, amid concerns of tariff evasion via transshipping through Thailand. Letters to CEOs of AutoZone, O’Reilly Auto Parts, and others demand compliance with U.S. trade laws. The issue involves significant tariffs imposed in 2019 on Chinese auto parts.

In a significant move, a bipartisan group of U.S. lawmakers has demanded answers from the CEOs of six major auto parts retailers regarding their procurement practices from a Chinese company, Qingdao Sunsong. The inquiry concerns potential evasion of U.S. tariffs, as revealed in letters obtained by Reuters on Friday.

Among the questioning lawmakers are Representative John Moolenaar, a Republican who chairs a House panel on China, and top committee Democrat Raja Krishnamoorthi. The group has raised red flags about Qingdao Sunsong allegedly transshipping products through Thailand to dodge U.S. customs duties. So far, the companies targeted in the inquiry have either not responded or could not be reached for comment.

The lawmakers stressed that U.S. retailers must ensure their supply chain practices are free of such unlawful trade practices. The letters highlighted concerns following a raid on Qingdao Sunsong's U.S. subsidiary, showing AutoZone, Advance Auto Parts, and O'Reilly, among others, are major buyers potentially sourcing from the Chinese firm. These actions follow significant tariffs introduced in 2019 specifically targeting Chinese auto parts, including those manufactured by Qingdao Sunsong.

(With inputs from agencies.)