Physical Address
304 North Cardinal St.
Dorchester Center, MA 02124
Legislation to revoke China’s permanent normal trade relations was introduced Thursday by a pair of bipartisan House lawmakers, building on a Republican effort last year to repeal Beijing’s preferential trade status.
The bill would consolidate US efforts in successive presidential administrations to impose more costs on China for what it criticizes as Beijing’s unfair trade practices.
President Trump has come to office promising an increase in tariffs on China, building on measures imposed in his first term, which were maintained and expanded during the Biden administration.
“For too long, normal, permanent trade relations with China have undermined our manufacturing base, displaced American jobs overseas, and allowed the CCP (Chinese Communist Party) to exploit our markets while betrays the promise of fair competition,” said Rep. John Moolenaar (R-Mich.), chairman of the House Select Committee on Countering the CCP.
“In response, this legislation will safeguard US national security, improve supply chain resilience, and bring manufacturing jobs back to America and our allies.”
Moolenaar introduced the legislation in the House along with Rep. Tom Suozzi (DN.Y.). An accompanying invoice was presented in the Senate by Sens. Tom Cotton (R-Ark.) and Jim Banks (R-Ind.). Secretary of State Marco Rubio, the former senator from Florida, was an original co-sponsor of the bill when it was introduced in November.
The bill, called the Trade Fairness Restoration Act, would end China’s PNTR status and create a new tariff column for China: imposing a minimum ad valorem tariff of 35 percent on goods non-strategic, the amount in proportion to the estimated value of the goods or transaction. A minimum ad valorem tariff of 100 percent would be imposed on all strategic goods.
The text of the bill provides a list of goods that would be subject to the tariff increase based on the Biden administration’s list of advanced technology products and China’s 2025 Made in China plan.
Tariff revenue would go to US farmers and manufacturers hurt by potential Chinese retaliation, and the additional revenue would be used to buy military equipment for the US in the Indo-Pacific, according to the bill.
The new rate column would be phased in over five years with a 10 percent rate increase in the first year; 25 percent in the second year; 50 percent in the fourth year and 100 percent of the increase implemented in the fifth year.
The bill comes as Trump has threatened China with a blanket tariff of 60 percent and an additional 10 percent tariff related to his criticism that Beijing has not done enough to crack down on trafficking related to the drug fentanyl.
Trump is also threatening extensive tariffs in Russia and countries that support his war in Ukraine, which could include China.
