U.S. Pushes to End China’s Special Trade Status and Import Exemption

U.S. lawmakers have introduced a bipartisan bill aiming to revoke China’s preferential trade status, phase in steep tariffs, and eliminate the “de minimis” exemption for low-value Chinese imports.

The Restoring Trade Fairness Act, spearheaded by Republican Representative John Moolenaar and co-sponsored by Democratic Representative Tom Suozzi, seeks to end the “permanent normal trade relations” (PNTR) designation for China. A companion bill has also been introduced in the Senate.

Moolenaar, who chairs the House of Representatives’ select committee on China, described granting China PNTR as a failed gamble that led to waves of Chinese imports, weakened U.S. manufacturing, and left the country vulnerable to economic coercion.

“This legislation will safeguard U.S. national security, enhance supply chain resilience, and bring manufacturing jobs back to America and our allies,” Moolenaar said.

PNTR was granted to China in 2000, facilitating its entry into the World Trade Organization (WTO). However, U.S. officials have repeatedly criticized China’s state-driven economic practices, including subsidies for strategic industries, as violations of WTO rules.

The proposed legislation would codify minimum tariffs of 35% on non-strategic goods and 100% on strategic goods, phased in over five years. It would also end the de minimis exemption for low-value imports from China and other “covered nations.”

The move follows a memo issued by former President Donald Trump earlier this week, urging legislative action on China’s PNTR status. Trump and his administration have long criticized China’s trade surplus with the U.S., implementing waves of tariffs during his first term.

President Joe Biden’s administration has maintained many of those tariffs, effectively limiting the benefits of PNTR for China.

Critics of the de minimis exemption argue it contributes to the U.S.-China trade deficit, which reached $279 billion in 2023, according to the U.S. Census Bureau. They also link it to the influx of illicit goods, including precursor chemicals for fentanyl.

China’s embassy in Washington condemned the bill, warning it would harm both nations’ interests and drag bilateral trade relations into a Cold War-era mentality.

While the path to passage remains uncertain, the Republican majority in both chambers of Congress and bipartisan support for countering China’s economic practices suggest the bill may gain traction.

Moolenaar emphasized that the legislation is part of broader efforts to restore U.S. manufacturing competitiveness and address national security concerns tied to economic dependence on China.