Restoring Trade Fairness Act
Restoring Trade Fairness Act
Plain Language Summary
# Restoring Trade Fairness Act - Summary **What it would do:** This bill would significantly change how the U.S. trades with China by removing China's special trade status (called "permanent normal trade relations") and imposing much higher tariffs on Chinese goods. Specifically, it would set a minimum 35% tariff on all Chinese imports and eliminate the current rule that allows small shipments under $800 to enter the U.S. tariff-free. The bill also prohibits imports from North Korea, Russia, and Iran from receiving this same small-shipment exemption. **Who it affects:** American consumers and businesses would likely face higher prices on Chinese-made goods (clothing, electronics, furniture, etc.), while some U.S.
manufacturers might benefit from reduced competition. The bill also affects importers and retailers who currently bring goods into the country. **Current status:** The bill (S. 206) was introduced by Senator Tom Cotton (R-AR) in the 119th Congress and is currently in committee, meaning it has not yet been voted on by the full Senate. The bill addresses broader concerns about trade policy with China and the countries listed, though it would represent a major shift from decades of U.S.-China trade 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
Read twice and referred to the Committee on Finance.