Bipartisan Bill Aims to Alter China’s Trade Privileges
On January 23, 2025, a bipartisan bill was introduced in Congress aiming to revoke China’s Permanent Normal Trade Relations (“PNTR”) status. Introduced by Representatives John Moolenaar (R-MI) and Tom Suozzi (D-NY), with bipartisan Senate backing, the Restoring Trade Fairness Act aims to transform U.S.-China trade relations by revoking PNTR status and introducing significant tariff increases.
The proposed legislation includes tariffs ranging from 35% on non-strategic goods to a minimum of 100% on strategic goods, such as advanced technologies. These measures would phase in over five years:
10% in the first year
25% in the second year
50% in year four, and
100% by year five.
The bill also seeks to eliminate de minimis exemptions for low-value imports. Currently, duties and strict screening are waived for shipments under $800 from China and other countries. This change is designed to close a loophole lawmakers argue undermines domestic producers.
With bipartisan support, the bill signals a growing consensus that the current framework of U.S.-China trade relations requires significant adjustment.
These changes could significantly impact businesses relying on Chinese imports. New tariffs and compliance requirements may disrupt supply chains, increase costs, and demand quick adjustments to trade strategies.
Under the new administration and in a shifting global trade environment, Roberts & Kehagiaras LLP is here to help you navigate challenges, manage risks, and uncover opportunities.
