Bill to Hike Tariffs to 35% or 100% on Chinese Imports Introduced

House Select Committee on China Chairman Rep. John Moolenaar, R-Mich., proposes increasing tariffs on nearly all Chinese goods to at least 35% and raising tariffs on "strategic goods" to 100%, with exceptions only for goods that are currently sourced only from China.

For those imports, a tariff rate quota set at the previous year's volume would be imposed, with current duty rates for the first three years; then, tariffs would increase to 35% or 100%, phased in over five years.

The bill includes more than 30 pages of 10-digit Harmonized Tariff Schedule subheadings for strategic goods, items such as color TVs, drones, binoculars, printed circuit boards, aircraft parts, milking machines, machine tools, batteries, tractor parts, telephones -- primarily in chapters 84 and 85 of the HTS. Moolenaar said they were chosen based on the Biden administration’s Advanced Technology Product List and China’s Made in China 2025 plan.

The Restoring Trade Fairness Act would apply to imports that enter U.S. commerce 15 days after enactment.

It says, "Notwithstanding any other provision of law, merchandise imported from the People’s Republic of China shall be appraised on the basis of the United States value of the merchandise." Generally, tariffs are levied on the price paid by U.S. importers.

It also would end eligibility for de minimis for goods of Chinese or Russian origin, and all other low-value packages would need to be handled by customs brokers. (The law also said de minimis could not apply to Iranian and North Korean goods, but those are already banned from import.)

Although the bill is quite specific about tariff levels, it has language that allows a president to hike tariffs higher if he or she determines it's necessary "to counteract the dependence of the United States" on those imported goods from China, or to punish China "for unfair trading practices." It also gives the president the authority to ban imports of any article if he determines it's a threat to national security, or if it's produced through an unfair trade practice, or if its production violated human rights.

The bill also requires that the tariff revenue be sent to exporters hurt by retaliation, including farmers, aircraft manufacturers and others, with leftover funds dedicated to buying munitions.

"I have introduced the Restoring Trade Fairness Act to stop the Chinese Communist Party from taking advantage of America and to level the playing field for American workers and our allies. Having permanent normal trade relations with China has failed our country, eroded our manufacturing base, and sent jobs to our foremost adversary," Moolenaar said in a press release announcing the introduction.

“Last year, our bipartisan Select Committee overwhelmingly agreed that the United States must reset its economic relationship with China. Today, building on tariffs from the Trump and Biden Administrations, the Restoring Trade Fairness Act will strip China of its permanent normal trade relations with the U.S., protect our national security, support supply chain resilience, and return manufacturing jobs to the U.S. and our allies.”