Following Tuesday's victories, House Republicans are advocating for the termination of China's Permanent Normal Trade Relations (PNTR). With control of the White House and Senate, and a potential win in the House, this once unlikely idea is gaining traction.
A spokesperson for the House China Committee stated, 'The Chinese Communist Party has exploited America's open trade policies, harming our economy, workers, and national security. It's time to reset our relationship with China.'
In 2000, Congress granted China PNTR, leading to a surge in Chinese imports to the U.S. Critics argue that PNTR facilitated outsourcing and could disrupt supply chains, while proponents fear inflation and increased tariffs if PNTR is revoked.
President-elect Donald Trump has proposed a 60% tariff on all Chinese goods and ending their favored trade status. Repealing PNTR would automatically raise tariffs on Chinese imports.
A bill introduced by Republican senators aims to end PNTR, increase tariffs on Chinese goods by up to 100%, and grant the president authority to impose further trade measures. The bill seeks to boost domestic production of national security-related goods and generate revenue to support affected farmers and manufacturers.
If implemented, China is expected to retaliate with tariffs on U.S. goods, particularly agricultural products. The bill's provisions include ending 'de minimis treatment' for China and allocating revenue to key defense needs and debt reduction.
