Bipartisan Bill Introduced to End PNTR, Change Bound Rates for All Countries to Column 2
A bipartisan bill has been introduced in the House that would require that the minimum tariff charged on Chinese goods be 35%, that tariffs higher than 35% in Column 2 of HTS be applied to some Chinese imports, 100% tariffs on hundreds of items on the Section 301 target list, and that the bound rates for U.S. tariffs, as declared at the World Trade Organization, should be changed to Column 2 for all countries.
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The Restoring Trade Fairness Act, introduced by House Select Committee on China Chairman John Moolenaar, R-Mich., and Rep. Tom Suozzi, D-N.Y., does allow for a phase-in of the higher duties.
No additional tariffs would be owed for the first 179 days after the bill becomes law; then 10% of the duty increase would apply from 180 days to one year and 364 days. At two years, 25% of the increase would be owed; at four years, 50% of the increase would be owed; and the full tariff increase would apply five years after enactment.
The bill gives the president the authority to establish tariff rate quotas for goods that are only imported from China; it also allows for ratcheting down quotas, to encourage trade diversion away from China.
The bill also says that for Chinese imports, the valuation should be set at the "United States value," defined as the price that it, or similar imports, are freely offered for sale to all purchasers at the time of import. The importer would submit a "statement" on the valuation, and CBP would determine whether to accept it, and submit that determination to the International Trade Commission, the bill says. It says the ITC should get an additional $3.6 million in funding in fiscal year 2025, and an additional $3 million each year after.
The bill also gives the president the authority to prohibit the import of any Chinese article that he determines poses a threat to U.S. national security, or that the U.S. determines was produced in a manner that constitutes an unfair trade practice or violated human rights.
The bill says "The United States now suffers chronic annual trade deficits that exceed $1,000,000,000,000, primarily driven by the predatory trade practices of the People’s Republic of China."
Sens. Tom Cotton, R-Ark., and Jim Banks, R-Ind., introduced a companion bill in the Senate.
In the press release announcing the introduction, Moolenaar said, "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. In response, this legislation will safeguard U.S. national security, enhance supply chain resilience, and bring manufacturing jobs back to America and our allies."
Suozzi said, "This bipartisan bill makes the message clear -- the Chinese Communist Party cannot receive preferential tariff treatment. The Chinese Communist Party is engaging in unfair trade practices that devastate the American manufacturing industry’s ability to compete, contribute to the theft of American intellectual property, and allow goods made with forced Uyghur labor in Xinjiang to enter our supply chain."
Cotton said, "China’s Permanent Normal Trade Relations status has enriched the Chinese Communist Party while costing the United States millions of jobs. This comprehensive repeal of China’s PNTR status and reform of the U.S.-China trade relationship will protect American workers, enhance our national security, and end the Chinese Communists’ leverage over our economy."