Three Republican senators have introduced new legislation that would strip China of its trade privileges with the United States and increase tariffs by 100 percent on certain Chinese imports. Sen. Tom Cotton (R-Ark.), who sits on the intelligence and armed services committee, said the legislation would remove China’s permanent normal trade relations (PNTR) status. The legislation, called the Neither Permanent Nor Normal Trade Relations Act (S.5264), was co-sponsored by Sens. Marco Rubio (R-Fla.) and Josh Hawley (R-Mo.).
“China’s Permanent Normal Trade Relations status has enriched the Chinese Communist Party while costing the United States millions of jobs,” Cotton said in a statement released by his office on Sept. 26.
“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.”
If enacted, the legislation would double tariffs on Chinese goods deemed important to U.S. national security over a five-year period. The president would also be authorized to create further quotas and tariffs to phase out Chinese imports and institute bans on specific goods from China.
The bill would end “de minimis” treatment for China, which allows shipments with a value of less than $800 to enter the United States with minimal scrutiny.
The revenue generated from these tariffs would go toward supporting farmers and manufacturers harmed by potential Chinese retaliation, purchasing key munitions for potential conflicts in the Pacific, and paying down debt.
In 2000, Congress passed legislation granting China permanent most-favored-nation status (MFN), now known as PNTR. This allowed China’s accession to the World Trade Organization (WTO) and opened up access for Chinese products in US markets with reduced tariffs.
“The Coalition for a Prosperous America commended Senators Cotton, Rubio & Hawley for advancing this important legislation,” said Michael Stumo CEO of CPA.
CPA estimated that since 2001 when there was an influx of cheap imports from China following its accession to WTO membership has cost America around 3 million manufacturing jobs.
