Tracking and Restricting Adversarial Circumvention of Embargoes Act of 2025
Summary
The "Tracking and Restricting Adversarial Circumvention of Embargoes Act of 2025" aims to address circumvention of sanctions against Iran by the People's Republic of China (PRC). It mandates a report from the Director of National Intelligence on oil and ballistic missile-related transactions between the PRC and Iran. The report will assess PRC's purchases of Iranian oil since 2020 and financial transactions supporting Iran's ballistic missile program.
Following the report, the Secretary of the Treasury must determine if the PRC is conducting sanctionable activities and report to Congress. The Act seeks to strengthen enforcement of existing embargoes and prevent adversarial nations from circumventing them.
The Act focuses on gathering information and making determinations, paving the way for potential future actions based on the findings.
Expected Effects
This Act will primarily result in increased scrutiny of financial and trade relationships between China and Iran. It could lead to the imposition of sanctions on Chinese entities found to be violating existing embargoes. The Act may also strain diplomatic relations between the US and China.
Furthermore, the Act could deter future circumvention activities by other nations or entities. The reporting requirements will increase transparency and awareness of these activities.
Potential Benefits
- Enhanced national security by hindering Iran's ballistic missile program.
- Strengthened enforcement of international sanctions.
- Increased transparency regarding China-Iran economic relations.
- Potential deterrence of future sanction circumvention.
- Improved understanding of methods used to evade sanctions (e.g., transshipment points, shell companies).
Most Benefited Areas:
Potential Disadvantages
- Potential strain on US-China diplomatic relations.
- Possible retaliatory actions by China.
- Increased compliance costs for businesses involved in international trade.
- The report's findings could be subject to political interpretation.
- The Act's effectiveness depends on the accuracy and completeness of the intelligence gathered.
Constitutional Alignment
The bill aligns with the constitutional powers of Congress to regulate commerce with foreign nations (Article I, Section 8, Clause 3) and to provide for the common defense (Article I, Section 8, Clause 1). The reporting requirements fall under Congress's oversight responsibilities.
The Act does not appear to infringe on any specific constitutional rights or liberties. It focuses on information gathering and potential economic sanctions, which are within the purview of congressional authority.
However, the implementation of sanctions could raise due process concerns if not applied fairly and transparently.
Impact Assessment: Things You Care About ⓘ
This action has been evaluated across 19 key areas that matter to you. Scores range from 1 (highly disadvantageous) to 5 (highly beneficial).