News: Rep. John Moolenaar (R-Mich.) is unveiling a new bill to revoke normal trade relations with China, which would trigger major tariffs and likely set off a new trade war.
The proposal from Moolenaar, who chairs the China select committee, would set minimum 35% tariffs on non-strategic goods imported from China and 100% levies on strategic goods. The tariffs would gradually phase in over five years.
Moolenaar’s bill would also strip de minimis treatment for low-value packages coming in from China and some other countries, which means they’d face more duties, fees and scrutiny.
China would be expected to retaliate with tariffs of its own on U.S. goods. That could have a big impact on industries like agriculture. Moolenaar’s bill would direct revenue partly toward U.S. farmers and manufacturers impacted by that retaliation.
“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 statement. “At the same time, the CCP has taken advantage of our markets and betrayed the hopes of freedom and fair competition that were expected when its authoritarian regime was granted permanent normal trade relations more than 20 years ago.”
Moolenaar added that his proposal ”levels the playing field and helps the American people win this strategic competition with the CCP.”
We scooped last week that Moolenaar was readying a bill to end normal trade relations with China. President-elect Donald Trump has threatened to impose tariffs of 60% or more on Chinese-made goods. This effort will go over well with some key players influencing Trump on trade, like Robert Lighthizer, the former U.S. Trade Representative who’s expected to return to the new Trump administration.
Some Trump allies — GOP Sens. Tom Cotton (Ark.), Marco Rubio (Fla.) and Josh Hawley (Mo.) — also introduced a bill to revoke normal trade relations with China in September.
The trouble here is something like this could rankle key GOP allies like ag groups. It could also raise the cost of everyday goods.
