Lawmakers Press Auto Parts Retailers Over Alleged Chinese Tariff Evasion

A bipartisan group of U.S. lawmakers has questioned major auto parts retailers regarding their purchase of products potentially evading U.S. tariffs from a Chinese company, Qingdao Sunsong. Key figures involved include Representative John Moolenaar, Democrat Raja Krishnamoorthi, and Senators Sherrod Brown and Bill Cassidy. Retailers under scrutiny include AutoZone, O’Reilly Auto Parts, and others.

A bipartisan group of U.S. lawmakers has queried the CEOs of six prominent auto parts retailers about their procurement practices, particularly concerning a Chinese company allegedly avoiding U.S. tariffs. According to letters reviewed by Reuters on Friday, the inquiry focuses on Qingdao Sunsong and its American subsidiary.

Leading the charge is Representative John Moolenaar, a Republican, who chairs a House panel on China, along with top Democrat Raja Krishnamoorthi, Senators Sherrod Brown (D), and Bill Cassidy (R), among others. They have asked AutoZone, O'Reilly Auto Parts, Genuine Parts, Advance Auto Parts, First Brands Group, and Factory Motor Parts to clarify their sourcing policies.

The lawmakers express concerns that Qingdao may be circumventing U.S. tariffs by routing their Chinese products through Thailand before entering the United States, thereby evading customs duties. This potential illegal transshipping raises significant economic and regulatory issues.

(With inputs from agencies.)