H.R. 694 would end normal trade relations treatment for goods from China and direct the President to set special import duty rates. Most listed rates would have a minimum of 35%; certain specified goods would have a minimum of 100%. The increases would phase in over time. The President could raise duties further, set quotas, or prohibit imports on national security, unfair trade, or human rights grounds. The bill would also change how Chinese goods are valued for customs, limit duty-free treatment for certain small shipments, and ask the United States to modify its World Trade Organization commitments. It would create a fund for producers whose exports face Chinese retaliation, with remaining funds directed to specified defense purchases. The bill was introduced and referred to a House subcommittee; it has not been enacted.
Importers of Chinese goods could face higher duties, including on many types of products listed in the bill. The bill does not estimate how those duties might affect prices for consumers. It would also end duty-free treatment for certain small shipments from covered nations. No publicly available information.
The bill authorizes $3.6 million for the International Trade Commission in fiscal year 2025 and $3 million for fiscal year 2026 and each year afterward, for hiring and information technology. It would also direct customs-duty revenue from Chinese imports to a fund, subject to appropriations for some uses. No publicly available information on the total costs.
Congress states in the bill that continued normal trade relations with China threatens national security and efforts to build resilient supply chains with U.S. allies. It also says changing trade treatment could address unfair practices and reduce reliance on Chinese imports.
No publicly available information.