Washington, DC [US]: A bipartisan group of US lawmakers has 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 remove Beijing’s preferential trade status, reflecting growing concerns over China’s trade practices.
The bill is designed to address criticisms of China’s trade policies and impose additional economic pressure on the country. If passed, it would mark a major shift in US trade policy, particularly regarding China’s manufacturing practices, which are often seen as harmful to American jobs and industries.
The introduction of the bill follows broader US efforts under both the Trump and Biden administrations to increase tariffs on Chinese imports. This move also aligns with previous actions aimed at holding China accountable for what many consider unfair trade practices and an obstacle to fair competition.
Rep. John Moolenaar (R-Mich.), a leading supporter of the bill, argued that China’s PNTR status has caused long-term damage to US manufacturing, outsourced jobs, and allowed China to take advantage of 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,” Moolenaar said. He added that the bill would help protect US national security, enhance supply chain resilience, and bring jobs back to the US and its allies.
Moolenaar introduced the bill alongside 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). Marco Rubio, former senator and current Secretary of State, also co-sponsored the bill when it was first introduced in November.
The Restoring Trade Fairness Act would end China’s PNTR status and implement a new tariff structure. Under the bill, non-strategic goods from China would face a 35% tariff, while strategic goods would incur a 100% tariff. This proposed tariff list would align with the Biden administration’s Advanced Technology Product List and China’s Made in China 2025 initiative.
The revenue generated from these tariffs would be directed towards supporting US farmers and manufacturers, as well as purchasing military equipment for the Indo-Pacific region. The tariff increase would be implemented gradually over five years.
This legislation comes as President Donald Trump has suggested imposing a blanket 60% tariff on Chinese imports and additional tariffs on China for its failure to curb fentanyl trafficking. Trump has also indicated the possibility of imposing tariffs on Russia and nations supporting its war in Ukraine, which could include China.