Restoring Trade Fairness Act
Sponsored By: Representative Moolenaar
In Committee
Summary
Suspends permanent normal trade relations for China and imposes high, inflation‑adjusted tariff floors on Chinese goods. The bill would phase in elevated duties and create a Treasury Trust Fund fed by those duties to compensate U.S. producers and finance targeted purchases and defense stockpiles.
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Bill Overview
Analyzed Economic Effects
5 provisions identified: 2 benefits, 2 costs, 1 mixed.
Trust fund from China duty revenue
If enacted, Treasury would transfer into a trust fund each fiscal year an amount equal to duties collected on imports from China, starting in fiscal year 2024. Money could be used, if Congress appropriates it, to compensate U.S. producers harmed by retaliation and to buy agricultural and critical-industry goods. Transfers must be made at least quarterly. The trust fund would terminate 10 years after enactment and any remaining balance would go to the Treasury general fund for deficit reduction.
Higher China tariffs and rules
If enacted, normal trade relations with China would end the day after enactment. The President would set China-only tariff rates based on the HTS column 2 rates and adjust them for inflation. Most rates below 35% would be raised to at least 35%, and certain listed items could have a 100% floor. Duty increases would phase in: 10% after 180 days; 25% at 2 years; 50% at 4 years; and 100% at 5 years. The USITC would report each year by July 1 on rates below the floors. Importers of China goods would have to submit a "United States value" on entry and CBP would verify it.
Yearly quotas for China-only goods
If enacted, the President would set a yearly tariff-rate quota for goods that are "imported only from China." Each year's quota would equal U.S. consumption minus U.S. production for the most recent year. For three years after enactment, in-quota imports would use pre-enactment duty rates. Beginning three years after enactment, in-quota entries would follow a phased-in increase (10% at year 3; 25% at year 5; 50% at year 6; 100% at year 7). Any imports above the quota would face a 100% ad valorem rate.
More USITC staff and IT money
If enacted, Congress would be authorized to provide $3.6 million to the USITC for fiscal year 2025 and $3.0 million for fiscal year 2026 and each year after. The money would be for hiring staff and improving information technology. Congress must still approve any actual spending.
No $800 duty-free for covered nations
If enacted, the bill would remove the $800 de minimis duty-free exemption for articles that originate in a "covered nation." The change would apply to entries made 15 days after enactment. Low-value shipments from covered nations that were once duty-free could owe duties and taxes under this rule.
Sponsors & CoSponsors
Sponsor
Moolenaar
MI • R
Cosponsors
Suozzi
NY • D
Sponsored 1/23/2025
Diaz-Balart
FL • R
Sponsored 2/4/2025
Roll Call Votes
No roll call votes available for this bill.
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