Lawmakers Investigate U.S. Auto Retailers for Alleged Purchase of Chinese Parts Evading Tariffs

WASHINGTON, Oct 3 (Trendy Auto Parts) – A bipartisan group of U.S. lawmakers is investigating whether several major auto parts retailers purchased products from a Chinese company accused of evading U.S. tariffs, according to letters reviewed by Reuters. The inquiry is focused on whether AutoZone, O’Reilly Auto Parts, Genuine Parts, Advance Auto Parts, First Brands Group, and Factory Motor Parts bought auto parts from Qingdao Sunsong, a Chinese manufacturer suspected of circumventing tariffs through its U.S.-based subsidiary.

The investigation is being led by Representative John Moolenaar, a Republican who chairs a House panel on China, and Raja Krishnamoorthi, the panel’s top Democrat. The letters, co-signed by other lawmakers including Senators Sherrod Brown (D-OH) and Bill Cassidy (R-LA), expressed concerns that Qingdao Sunsong may have been illegally shipping Chinese products through Thailand to bypass U.S. customs duties.

“U.S. retailers are responsible for ensuring their procurement practices do not inadvertently support companies engaged in tariff evasion or other unlawful trade practices,” the lawmakers stated in the letter. They requested detailed information about the retailers’ purchases from Qingdao Sunsong and the steps being taken to ensure compliance with U.S. trade laws.

The inquiry follows reports that U.S. officials raided the U.S. subsidiary of Qingdao Sunsong in January. The lawmakers cited public company disclosures indicating that U.S. auto part retailers, including AutoZone, Advance Auto Parts, and O’Reilly, account for more than 40% of Qingdao Sunsong’s sales.

In 2019, the U.S. imposed a 25% tariff on certain Chinese auto parts, including rubber hose assemblies produced by Qingdao Sunsong. Lawmakers allege that the company set up a facility in Thailand specifically to transship goods and evade these tariffs. The company had previously admitted in filings that its investment in Thailand aimed to lower costs by circumventing U.S. duties.

The auto parts retailers named in the letters have not yet responded to requests for comment.