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U.S. Homeland Security Raids Chinese Auto Parts Maker in Ohio

The U.S. Department of Homeland Security (DHS) executed a search warrant at an Ohio-based Chinese auto parts manufacturer amidst allegations of trade fraud, as lawmakers express concerns over tariff evasion.

Harco Manufacturing Group Raided

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On January 21, DHS officers conducted a search at Harco Manufacturing Group in Moraine, Ohio, an auto parts maker with alleged ties to trade fraud.

Subsidiary of Chinese Firm Sunsong

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Harco is a subsidiary of Sunsong, a Chinese parts manufacturer that acquired Harco in 2015. Both companies share the same listed address.

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Growing Concerns Over Tariff Evasion

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Lawmakers in the United States are increasingly worried that certain Chinese companies may be circumventing U.S. tariffs. Reports from other news portals have highlighted this concern.

Ongoing Federal Investigation

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According to a DHS spokesperson, the search at Harco Manufacturing Group is part of a continuing federal investigation.

Accusations Against Qingdao Sunsong

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In September, the House Select Committee on the Chinese Communist Party wrote a letter to DHS Secretary Alejandro Mayorkas, accusing Qingdao Sunsong, a company affiliated with Harco, of relocating some of its production to Thailand to evade U.S. tariffs.

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Trade Fraud Allegations

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The congressional letter pointed to Qingdao Sunsong’s public filings, which acknowledged the imposition of 25% U.S. import tariffs on certain Chinese-made goods.

Accelerated Production in Thailand

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The company’s filings also indicated an accelerated production in Thailand as an effort to reduce tariff-related costs.

Catastrophic Impact on American Manufacturers

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Republican congressmen Mike Gallagher of Wisconsin and Darin LaHood of Illinois, authors of the letter, described Sunsong’s actions as “blatant trade fraud” with severe consequences for American manufacturers.

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Transshipment as a Violation

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The lawmakers stressed that using transshipment to evade U.S. tariffs constitutes a serious violation of U.S. law, undermining both American economic interests and national security.

Biden Administration’s Tariff Policies

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The Biden administration has maintained many of the tariffs imposed by the Trump administration on Chinese imports, starting in 2018.

Unmet Commitments from China

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China has failed to fulfill its commitments outlined in a 2020 trade deal with the United States. The agreement required China to increase its purchases of U.S. goods and services, a promise that remains unmet.

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