Republicans inch closer to ending China’s favored trade status

Fresh off Tuesday’s red sweep, House Republicans have begun to renew the idea of ending China’s preferential trade status. 

They have begun to promote the idea of ending China’s Permanent Normal Trade Relations (PNTR). With Republicans seizing control of the White House and Senate, and being on track for a likely win in the House, the idea that was once considered a longshot now now become a likelihood. 

“For too long, the Chinese Communist Party has taken advantage of America’s open hand with predatory economic practices that target the American economy, our workers, businesses, and our national security. We believe in free trade with free nations, but as the Committee recommended on a bipartisan basis, it is now time to reset our relationship with China by moving past PNTR to a trade relationship that reflects the threat we face from the CCP,” a spokesperson for the House China Committee told Fox News Digital. 

In 2000, Congress voted to grant China permanent normal trade relations. The designation fundamentally changed China-U.S. trade relations: U.S. consumers gained access to low-priced Chinese imports, and between 2001 and 2021, the value of goods imported from China quadrupled to $500 billion.

Critics of PNTR say it allowed companies to outsource their manufacturing to China – and that renewed tensions with Beijing could lead to supply chain issues. 

Fresh off Tuesday’s red sweep, House Republicans have begun to renew the idea of ending China’s preferential trade status. (Photo by Wang Gang/VCG via Getty Images)

REPUBLICANS PROPOSE BILL THAT WOULD DOUBLE TARIFFS ON CHINESE IMPORTS AND END FAVORED TRADE STATUS

Proponents of PNTR say that removing that status would cause inflation, allowing further tariffs on billions’ worth of Chinese goods. 

President-elect Donald Trump has already proposed an across-the-board 60% tariff on all Chinese goods and end China’s favored trade status. 

Repealing PNTR would automatically reset the tariffs on Chinese goods to higher levels. 

Trump could enact much of his trade agenda on goods he deems to be an “unusual and extraordinary threat” to national security or the U.S. economy. 

The GOP’s platform unveiled in July called for an ending of PNTR. In September, Fox News Digital first reported that a group of Republican senators put forth a bill to end China’s PNTR and increase tariffs on many of its goods up to 100%. 

China has enjoyed preferential trade status in the U.S. since 2024. Biden did not move to end that status. (Brendan Smialowski/AFP via Getty Images)

Trump has promised to increase tariffs on Chinese goods to 60%.  (Fox News Channel)

GOP SENATORS EYE COMPREHENSIVE STRATEGY TO CURB CCP INFLUENCE 

Over five years, the bill would increase tariffs by 100% on imports deemed “strategic” to national security by the Biden administration in an effort to force the growth of the domestic market for national security-related goods. 

It would boost tariffs on non-strategic goods by a minimum of 35%. 

China is widely expected to respond with tariffs on U.S.-imported goods. China buys tens of billions of dollars’ worth of agricultural products, primarily soybeans, each year. 

The bill, led by Sen. Tom Cotton, R-Ark., and cosponsored by Sens. Marco Rubio, R-Fla., and Josh Hawley, R-Mo., would also grant the president the authority to institute further tariffs, quotas and bans on specific Chinese goods. It would end “de minimis treatment” for China, or the value threshold below which imports are not subject to customs duties. 

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The revenue generated, according to the bill, would go toward farmers and manufacturers injured by potential Chinese retaliation, the purchase of key munitions important to a Pacific conflict, and paying down the debt.

Fox News’ Liz Elkind contributed to this report.