A group of Republican senators has put forth a new bill aimed at discontinuing permanent normal trade relations with China and doubling tariffs on goods affiliated with the Chinese Communist Party (CCP).
The proposed legislation outlines a five-year plan to escalate tariffs by 100% on imports categorized as 'strategic' to national security by the Biden administration. This move is intended to stimulate the growth of the domestic market for national security-related products.
Additionally, the bill seeks to raise tariffs on non-strategic goods by a minimum of 35%. Led by Sen. Tom Cotton, R-Ark., and supported by Sens. Marco Rubio, R-Fla., and Josh Hawley, R-Mo., the bill would grant the president authority to impose further tariffs, quotas, and bans on specific Chinese goods.
The revenue generated from these measures would be allocated towards supporting farmers and manufacturers affected by potential Chinese retaliation, acquiring essential munitions crucial for a Pacific conflict, and reducing national debt.
Sen. Cotton emphasized that the bill's objective is to safeguard American workers, bolster national security, and diminish China's economic influence over the U.S. economy.
Economists predict that China's GDP is anticipated to grow by nearly 5% in 2024, while the U.S. is forecasted to experience half that growth rate.
The proposed legislation aligns with one of former President Trump's key priorities, who advocated for imposing a 60% tariff on Chinese goods and a 10% baseline tariff on all imports. Vice President Kamala Harris criticized this plan as a burden on American consumers.
Earlier this month, China imposed new export controls on vital minerals essential to the U.S. defense industry, including antimony products. Antimony, a flame-retardant metal, is utilized in various defense applications, batteries, and photovoltaic equipment.
In 2000, the U.S. Congress granted China permanent normal trade relations, significantly altering trade dynamics between the two nations. The move led to a substantial increase in the value of goods imported from China over the past two decades.
Sen. Hawley emphasized the necessity of revoking China's favored trade status to safeguard American workers and revive millions of manufacturing jobs lost overseas.
The Biden administration recently finalized plans to raise tariffs on specific Chinese-made products, including electric vehicles, solar cells, critical minerals, and more.
China is expected to retaliate with tariffs on U.S.-made goods in response to these actions.
