A bill to suspend normal trade relations with the People's Republic of China and to increase the rates of duty applicable with respect to articles imported from the People's Republic of China, and for other purposes.

1/24/2025, 11:56 AM

Restoring Trade Fairness Act

This bill establishes various trade measures related to China, including by revoking China's permanent normal trade relations (PNTR) status and increasing the rates of duty (i.e., tariffs) on Chinese imported goods. The bill prohibits imported goods originating from North Korea, China, Russia, or Iran from receiving de minimis treatment. (Current law allows for U.S. imports under a de minimis threshold of $800 per shipment to enter free of tariffs, fees, and taxes.)

Specifically, the bill revokes China's PNTR status. Currently, China's PNTR status allows for Chinese goods to have duty rates set forth in column 1 of the Harmonized Tariff Schedule of the United States (HTS). With the removal of China's PNTR status, the bill generally sets the applicable duty rates on imported Chinese goods at the higher rates listed in column 2 of the HTS, with exceptions.

The bill establishes a minimum duty rate of 35% for all Chinese goods, which requires column 2 rates to be at least 35%. However, the bill establishes a minimum duty rate of 100% for a list of specified goods (e.g., various minerals, certain vaccines and drugs, and certain defense-related articles). Duty rates are phased in over five years and adjusted annually for inflation.

The bill also

  • authorizes the President to take additional actions related to trade with China, 
  • requires merchandise imported from China to be appraised based on U.S. value, and 
  • establishes a trust fund to compensate U.S. producers for lost revenue resulting from retaliatory actions by China.
Bill 119 s 206, also known as the "China Trade Relations Suspension Act," is a proposed piece of legislation in the US Congress that aims to suspend normal trade relations with the People's Republic of China. The bill also seeks to increase the rates of duty applicable to articles imported from China.

The main purpose of this bill is to address concerns about China's trade practices and their impact on the US economy. By suspending normal trade relations with China, the US government hopes to level the playing field for American businesses and workers. Additionally, by increasing the rates of duty on Chinese imports, the bill aims to make these products less competitive in the US market, thereby encouraging domestic production and consumption.

Overall, the China Trade Relations Suspension Act is a response to ongoing tensions between the US and China over trade issues. Supporters of the bill argue that it is necessary to protect American interests and address unfair trade practices. Critics, however, raise concerns about the potential negative impact on global trade and the possibility of retaliation from China. As the bill makes its way through the legislative process, it will be important to closely monitor any amendments or changes that may be made. Ultimately, the outcome of this legislation could have significant implications for US-China relations and the broader global economy.
Congress
119
Number
S - 206
Introduced on
2025-01-23
# Amendments
0
Sponsors
+5
Cosponsors
+5

Status of Legislation

Bill Introduced
Introduced to House
House to Vote
Introduced to Senate
Senate to Vote

Purpose and Summary

Restoring Trade Fairness Act

This bill establishes various trade measures related to China, including by revoking China's permanent normal trade relations (PNTR) status and increasing the rates of duty (i.e., tariffs) on Chinese imported goods. The bill prohibits imported goods originating from North Korea, China, Russia, or Iran from receiving de minimis treatment. (Current law allows for U.S. imports under a de minimis threshold of $800 per shipment to enter free of tariffs, fees, and taxes.)

Specifically, the bill revokes China's PNTR status. Currently, China's PNTR status allows for Chinese goods to have duty rates set forth in column 1 of the Harmonized Tariff Schedule of the United States (HTS). With the removal of China's PNTR status, the bill generally sets the applicable duty rates on imported Chinese goods at the higher rates listed in column 2 of the HTS, with exceptions.

The bill establishes a minimum duty rate of 35% for all Chinese goods, which requires column 2 rates to be at least 35%. However, the bill establishes a minimum duty rate of 100% for a list of specified goods (e.g., various minerals, certain vaccines and drugs, and certain defense-related articles). Duty rates are phased in over five years and adjusted annually for inflation.

The bill also

  • authorizes the President to take additional actions related to trade with China, 
  • requires merchandise imported from China to be appraised based on U.S. value, and 
  • establishes a trust fund to compensate U.S. producers for lost revenue resulting from retaliatory actions by China.
Bill 119 s 206, also known as the "China Trade Relations Suspension Act," is a proposed piece of legislation in the US Congress that aims to suspend normal trade relations with the People's Republic of China. The bill also seeks to increase the rates of duty applicable to articles imported from China.

The main purpose of this bill is to address concerns about China's trade practices and their impact on the US economy. By suspending normal trade relations with China, the US government hopes to level the playing field for American businesses and workers. Additionally, by increasing the rates of duty on Chinese imports, the bill aims to make these products less competitive in the US market, thereby encouraging domestic production and consumption.

Overall, the China Trade Relations Suspension Act is a response to ongoing tensions between the US and China over trade issues. Supporters of the bill argue that it is necessary to protect American interests and address unfair trade practices. Critics, however, raise concerns about the potential negative impact on global trade and the possibility of retaliation from China. As the bill makes its way through the legislative process, it will be important to closely monitor any amendments or changes that may be made. Ultimately, the outcome of this legislation could have significant implications for US-China relations and the broader global economy.
Alternative Names
Official Title as IntroducedA bill to suspend normal trade relations with the People's Republic of China and to increase the rates of duty applicable with respect to articles imported from the People's Republic of China, and for other purposes.

Comments

Related

Member:  
Tom Cotton
Member:  
Jim Banks
Committee:  
Finance

Recent Activity

Latest Summary4/18/2025

Restoring Trade Fairness Act

This bill establishes various trade measures related to China, including by revoking China's permanent normal trade relations (PNTR) status and increasing the rates of duty (i.e., tariffs) o...

Latest Action1/23/2025
Read twice and referred to the Committee on Finance.