President Donald Trump’s tariffs are a critical tool to reorganize a broken global trading system and push back on economic coercion by America’s adversaries. Unfortunately, China has already figured out a simple workaround: Chinese companies are setting up anonymous shell companies to circumvent tariffs. But while the Trump administration is taking the right steps for America’s economic security by closing the front door to dangerous trade imbalances, it is taking counterproductive steps on anonymity — rolling back the enforcement of the Corporate Transparency Act — and allowing evasion to proliferate out the back door.
Tariff evasion isn’t the only threat that will increase under the proposed CTA rollback. On his first day in office, Trump took the powerful step of designating the drug cartels flooding America with fentanyl as foreign terrorists. Yet while this welcome move takes the handcuffs off law enforcement, the CTA rollback is putting on a blindfold instead.
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