Us Congress Senate Bill SB206

Us Congress 2025-2026 Regular Session

• Introduced: 1/23/25
• Refer: 1/23/25

Caption

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.

Impact

If enacted, SB206 will have a substantial impact on existing trade regulations. The bill stipulates that certain rates of duty will be set at a minimum of 100% ad valorem for specific products, affecting a wide range of imports. The legislation empowers the President to further modify these duties if deemed necessary to counteract the United States' reliance on Chinese imports or to address unfair trade practices. Moreover, it includes provisions for annual adjustments to reflect inflation and establishes a trust fund to compensate U.S. producers affected by retaliatory actions taken by China.

Summary

SB206, titled the 'Restoring Trade Fairness Act', proposes to suspend normal trade relations with the People's Republic of China and to significantly raise the rates of duty for articles imported from China. This Act aims to address concerns over unfair trading practices, promote national security, and encourage a more favorable trade balance by imposing stricter tariffs on imports from China, which has been a long-standing target of U.S. trade policies due to perceived economic aggressions.

Contention

Notable points of contention surround the potential economic ramifications of the proposed trade policies. Proponents argue that such measures are critical to curtailing China’s impact on U.S. industry and protecting national interests. However, opponents express concern regarding the adverse effects on prices for consumers, the feasibility of sourcing alternative suppliers, and the risk of escalating trade wars. Additionally, agricultural sectors fear significant losses due to the potential for retaliatory tariffs on American exports to China.

Congress_id

119-S-206

Policy_area

Foreign Trade and International Finance

Introduced_date

2025-01-23