A bipartisan pair of US House lawmakers have introduced a bill aimed at revoking China’s Permanent Normal Trade Relations (PNTR) status.
The legislation introduced on Thursday builds on prior Republican efforts to repeal Beijing’s preferential trade status, reflecting ongoing concerns over China’s trade practices, The Hill reported.
The bill seeks to address criticisms of China’s trade policies and aims to impose more economic costs on China. It would make a significant shift in US trade policy, particularly with respect to China’s manufacturing practices, which are seen as detrimental to American jobs and industries.
The legislation comes amid broader US efforts under both Trump and Biden administrations to increase tariffs on Chinese imports. This move is also in line with previous actions taken to hold China accountable for what many see as unfair trade practices and a challenge to fair competition.
Rep. John Moolenaar (R-Mich.), a leading proponent of the bill, argued that for too long, the PNTR status has harmed US manufacturing, outsourced jobs abroad, and allowed China to exploit US markets.
“For too long, permanent normal trade relations with China have undermined our manufacturing base, shifted American jobs abroad, and allowed the CCP to exploit our markets while betraying the promise of fair competition,” said Moolenaar. He further emphasised that the bill would protect US national security, enhance supply chain resilience, and bring back jobs to the US and its allies, reported The Hill.
Moolenaar introduced the bill with Rep. Tom Suozzi (D-N.Y.), while a companion version was filed in the Senate by Sens. Tom Cotton (R-Ark) and Jim Banks (R-Ind). Secretary of State Marco Rubio, former senator from Florida, also co-sponsored the bill when it was initially introduced in November.
The Restoring Trade Fairness Act would end China’s PNTR status and introduce a new tariff system. Under the bill, non-strategic goods from China would be subject to a 35 per cent tariff, while strategic goods would face a 100 per cent tariff. The proposed tariff list would align with the Biden administration’s Advanced Technology Product List and China’s Made in China 2025 plan.
The revenue from the tariffs would be allocated to US farmers and manufacturers, as well as used for military equipment purchases in the Indo-Pacific region. The tariff increase would be phased in over five years, The Hill reported.
The bill emerges as President Donald Trump suggested a blanket 60 per cent tariff on Chinese imports and additional tariffs on China for not doing enough to curb fentanyl trafficking. He has also signaled potential tariffs on Russia and countries supporting its war in Ukraine, which may include China.