U.S. lawmakers have introduced a bipartisan bill aimed at revoking China's Permanent Normal Trade Relations (PNTR) status, a significant shift in U.S.-China trade policy that reflects ongoing concerns over China's economic practices. The legislation, known as the Restoring Trade Fairness Act, was introduced by Representatives John Moolenaar (R-Mich.) and Tom Suozzi (D-N.Y.) on January 23, 2025, and is supported by a companion bill in the Senate led by Senators Tom Cotton and Jim Banks.

Revocation of PNTR Status: The bill seeks to end the preferential trade status that China has held since 2000, which facilitated its entry into the World Trade Organization (WTO). This status has allowed Chinese goods to enter the U.S. market with lower tariffs compared to other countries.

Increased Tariffs: It proposes imposing a minimum tariff of 35% on non-strategic goods and 100% on strategic goods. These tariffs would be phased in over five years, starting with a 10% tariff in the first year, increasing to 50% in the fourth year, and reaching 100% by the fifth year.

he bill aims to remove the De Minimis exemption for low-value imports from China, which currently allows shipments valued under $800 to enter duty-free. This change could significantly impact Chinese e-commerce platforms like Shein and Temu.

Proponents of the bill argue that the current trade relationship with China has harmed U.S. manufacturing and led to job losses. Moolenaar stated that maintaining PNTR status has allowed China to exploit U.S. markets while undermining fair competition. The legislation is seen as a response to what lawmakers describe as unfair economic practices by the Chinese government, including extensive subsidies and intellectual property theft.

The introduction of this bill aligns with broader U.S. efforts under both Trump and Biden administrations to reassess trade relations with China. Recent comments from Trump indicated plans for additional tariffs on Chinese imports, particularly in response to issues like fentanyl trafficking. The proposed legislation underscores a growing bipartisan consensus in Congress regarding the need to recalibrate economic relations with China amid rising tensions.

While supporters believe this legislation will protect U.S. jobs and national security, critics warn it could escalate trade tensions and disrupt supply chains, given that China is currently the largest trading partner of the U.S., with bilateral trade reaching approximately $690.6 billion in 2022. The outcome of this legislative effort remains uncertain as it must pass through both chambers of Congress before becoming law.

ANI