New Bid to Revoke China PNTR Status

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A bipartisan group of China hawks are making the first push in the new Congress to take away China’s permanent normal trade relations status.    

Restoring Trade Fairness Act, the first bipartisan bill that would revoke China’s Permanent Normal Trade Relations (PNTR). This comes following President Trump's new executive order, directing the Secretary of Commerce and the United States Trade Representative to assess legislative proposals regarding Permanent Normal Trade Relations with the People's Republic of China.

Introduced by Rep Tom Suozzi (D-NY) and John Moolenaar (R-MI) introduced the bill. Senators Tom Cotton (R-AR) and Jim Banks (R-IN) introduced companion legislation in the Senate.

New Tariff Column for China

The bill would end PNTR for China and codify tariffs in statute and create a new tariff column for China.

The new column would create a minimum 35 percent ad valorem tariff for non-strategic goods and a minimum 100 percent ad valorem tariff for all strategic goods. T

he new tariff column rates would be phased-in over five years with 10 percent of the tariff increase implemented in year one, 25 percent of the increase implemented in year two, 50 percent of the increase implemented in year four and 100 percent of the increase implemented in year five.

Strategic goods that would be subject to the 100 percent tariffs are based on the Biden Administration’s Advanced Technology Product List and China’s Made in China 2025 plan.

The bill also would end de minimis treatment for covered nations including China and require customs brokers for other de minimis shipments.

The revenue raised by the tariffs would be directed to US farmers and manufacturers injured by any Chinese retaliation. Additional revenue would be used to purchase munitions vital to deterring Chinese Communist Party aggression in the Pacific.

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