A group of Republican senators has introduced a new bill aimed at ending permanent normal trade relations (PNTR) with China and significantly increasing tariffs on goods imported from the Chinese Communist Party (CCP).
Spearheaded by Senator Tom Cotton of Arkansas, the proposed legislation seeks to bolster domestic production of national security-related goods by implementing a 100% tariff increase over five years on imports classified as “strategic” by the Biden administration. Additionally, the bill proposes a minimum 35% tariff increase on non-strategic goods.
The bill, co-sponsored by Senators Marco Rubio of Florida and Josh Hawley of Missouri, would also empower the president to impose additional tariffs, quotas, and bans on specific Chinese products. Moreover, it aims to eliminate “de minimis treatment” for China, which allows imports under a particular value to escape customs duties.
The revenue generated from these tariffs is intended to support farmers and manufacturers adversely affected by potential Chinese retaliation, fund the purchase of key munitions essential for a potential Pacific conflict, and help pay down the national debt.
“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,” Cotton stated.
Senator Rubio criticised the decision to grant China trade benefits, calling it one of the most detrimental decisions in U.S. history.
Economic forecasts suggest that while China’s GDP is expected to grow by nearly 5% in 2024, the U.S. is projected to see only half that growth. This legislation aligns with former President Trump’s objectives; he reiterated his intention to impose a 60% tariff on Chinese goods during a recent presidential debate.
Tensions between the U.S. and China have escalated recently, with China implementing new export controls on essential minerals critical to the U.S. defence industry.
This includes antimony, a metal used in various military applications, for which China produced nearly half of the global supply last year.
The proposed tariff increases follow Trump’s initial tariffs on around $300 billion worth of Chinese imports, a strategy that President Biden has largely maintained while adding tariffs on an additional $15 billion worth of Chinese products.
The bill’s introduction marks a significant push by Republican senators to reshape U.S.-China trade relations, reflecting a growing sentiment in Congress that seeks to prioritise American manufacturing and national security.
