ANI
Washington
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. Mumbai nightlife
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.
"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.
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.
China’s embassy in Washington said any such move would harm both Chinese and US interests.
"Some US politicians are trying to reverse history and drag Sino-U.S. economic and trade relations back to the Cold War era,” embassy spokesperson Liu Pengyu said.
The path for the bill to become law was not immediately clear, but Republicans hold majorities in both the House and Senate. Lawmakers from both parties say they want to increase US companies’ ability to compete with China.
Waves of US tariffs by Trump in his first term and by the Biden administration had effectively ended PNTR treatment for China.
Nonetheless, the proposed legislation would end annual recertification of the designation, and codify minimum 35 percent tariffs for non-strategic goods and minimum 100 percent tariffs for strategic goods. The duties would be phased in over five years - 10 percent in the first year, 25 percent in the second year, 50 percent in year four and 100 percent by year five.
The bill would also end de minimis treatment for certain "covered nations,” including China. Trump has called for changes to the $800 de minimis duty-free exemption for low-value shipments often blamed for illicit imports of fentanyl precursor chemicals from China.
Critics of de minimis say it contributes to the United States’ trade deficit with China - $279 billion in 2023, according to the US Census Bureau, opens new tab.