Restoring Trade Fairness Act
Restoring Trade Fairness Act
Plain Language Summary
# Restoring Trade Fairness Act (HR 694) - Summary **What the Bill Would Do** If passed, this bill would significantly change how the U.S. trades with China by revoking China's "permanent normal trade relations" (PNTR) status—a longstanding trade arrangement that has kept tariffs on Chinese goods relatively low. The bill would instead apply much higher tariff rates to Chinese imports, with a minimum 35% tax on all Chinese goods. Additionally, it would eliminate a current loophole that allows small shipments (under $800) from China, North Korea, Russia, and Iran to enter the U.S. duty-free. **Who It Affects** American consumers and businesses would likely feel the biggest impact. Higher tariffs on Chinese goods would raise prices for imported products like electronics, clothing, and appliances.
U.S. importers and retailers would face increased costs, which could be passed on to shoppers. Conversely, some domestic manufacturers competing against Chinese imports might benefit from reduced competition. **Current Status** The bill was introduced by Rep. John Moolenaar (R-MI) in the 119th Congress and is currently in committee, meaning it hasn't yet been debated or voted on by the full House. It represents a more confrontational trade approach toward China than current policy.
CRS Official Summary
Restoring Trade Fairness ActThis bill establishes various trade measures related to China, including by revoking China's permanent normal trade relations (PNTR) status and increasing the rates of duty (i.e., tariffs) on Chinese imported goods. The bill prohibits imported goods originating from North Korea, China, Russia, or Iran from receiving de minimis treatment. (Current law allows for U.S. imports under a de minimis threshold of $800 per shipment to enter free of tariffs, fees, and taxes.)Specifically, the bill revokes China's PNTR status. Currently, China's PNTR status allows for Chinese goods to have duty rates set forth in column 1 of the Harmonized Tariff Schedule of the United States (HTS). With the removal of China's PNTR status, the bill generally sets the applicable duty rates on imported Chinese goods at the higher rates listed in column 2 of the HTS, with exceptions.The bill establishes a minimum duty rate of 35% for all Chinese goods, which requires column 2 rates to be at least 35%. However, the bill establishes a minimum duty rate of 100% for a list of specified goods (e.g., various minerals, certain vaccines and drugs, and certain defense-related articles). Duty rates are phased in over five years and adjusted annually for inflation.The bill alsoauthorizes the President to take additional actions related to trade with China, requires merchandise imported from China to be appraised based on U.S. value, and establishes a trust fund to compensate U.S. producers for lost revenue resulting from retaliatory actions by China.
Latest Action
Referred to the Subcommittee on Coast Guard and Maritime Transportation.