A bill to revoke China’s trade privileges is being pushed by US lawmakers.

A major change in U.S.-China trade policy that demonstrates continued worries about China’s economic policies is the introduction of a bipartisan measure by U.S. senators to revoke China’s Permanent Normal Trade Relations (PNTR) status. On January 23, 2025, Representatives John Moolenaar (R-Mich.) and Tom Suozzi (D-N.Y.) proposed the legislation, which is known as the Restoring Trade Fairness Act. Senators Tom Cotton and Jim Banks are the Senate’s co-sponsors of the bill.

The law aims to terminate China’s privileged trade status, which has been in place since 2000 and allowed it to join the World Trade Organization (WTO). Because of this classification, Chinese goods can now enter the U.S. market with cheaper tariffs than those from other nations.

The proposal suggests raising tariffs to a minimum of 35% for non-strategic commodities and 100% for key goods. These tariffs would be implemented gradually over a five-year period, with a 10% tariff in the first year, a 50% tariff in the fourth, and a 100% tariff in the fifth.

The De Minimis exception for low-value imports from China, which already permits shipments under $800 to enter duty-free, is intended to be eliminated under the bill. Chinese e-commerce sites like Shein and Temu may be greatly impacted by this shift.

The bill’s supporters contend that U.S. manufacturing has suffered and jobs have been lost as a result of the current economic relationship with China. According to Moolenaar, keeping PNTR status has undermined fair competition and enabled China to take advantage of American markets. Lawmakers view the proposal as a reaction to what they consider as unfair economic practices by the Chinese government, such as widespread subsidies and theft of intellectual property.

Both the Trump and Biden administrations’ larger initiatives to reevaluate trade relations with China are in line with the launch of this bill. In response to problems like fentanyl trafficking, Trump recently hinted at plans to impose further tariffs on Chinese products. A increasing bipartisan consensus in Congress about the need to rebalance economic ties with China in the face of escalating tensions is highlighted by the proposed legislation.

Although proponents of the law think it will safeguard American employment and national security, detractors caution that, considering that China is presently the United States’ top trading partner—with bilateral commerce expected to reach over $690.6 billion in 2022—it might worsen trade tensions and cause supply chain disruptions. Since this legislative endeavor must pass both chambers of Congress in order to become law, the outcome is yet unknown.

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