Restoring Trade Fairness Act
Sponsored By: Senator Tom Cotton
Introduced
Summary
This bill would revoke China's permanent normal trade relations and impose a new China‑specific tariff regime that centers on steep, phased duty floors and valuation changes. It also removes duty‑free treatment for small shipments from covered countries and creates a Trust Fund to compensate U.S. producers for retaliation.
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- Importers and consumers: Goods from China would face a new minimum duty floor of 35% for most items and 100% for a specified list of sensitive products, and de minimis (small‑shipment) duty relief for covered nations would be barred.
- U.S. producers and exporters: Duty receipts from Chinese imports would be transferred into a Trust Fund used to compensate producers and to purchase affected commodities and key industry goods including agriculture, semiconductors, minerals, and aircraft parts; the Trust Fund ends 10 years after enactment.
- Customs and trade agencies: Merchandise from China must be appraised on a defined U.S. value and the U.S. International Trade Commission would get additional staff and IT funding of $3.6 million in FY2025 and $3.0 million thereafter.
*The bill directs Treasury to transfer duties collected on PRC imports into a Trust Fund to finance compensatory purchases and payments and specifies the Trust Fund’s 10‑year life.*
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Bill Overview
Analyzed Economic Effects
5 provisions identified: 1 benefits, 3 costs, 1 mixed.
Higher tariffs and yearly quotas
If enacted, the President would raise China-only import duties using new minimum floors. Most goods would face at least a 35% duty. Many listed high-tech and strategic items would face at least a 100% duty. Increases phase in over five years (10% at 180 days, 25% at 2 years, 50% at 4 years, and 100% at 5 years). The President could add larger increases, set China-only quotas, or ban imports for security or human-rights reasons. The bill also lets yearly tariff-rate quotas be set equal to U.S. consumption minus U.S. production; in-quota imports pay old rates for three years, and imports over the quota face a 100% duty.
Tariff revenue trust for producers
If enacted, duties collected on Chinese imports would be transferred into a new Treasury trust fund starting in fiscal year 2024. Money in the fund would be available by appropriation to compensate U.S. producers for losses from Chinese retaliation and to buy affected U.S. goods. Agriculture payments get priority after an annual certification by September 30, 2024. After purchases, year-end leftovers could fund defense munitions. The trust ends 10 years after enactment and leftover balances then go to the general fund.
China imports valued by U.S. price
If enacted, merchandise from China would be appraised on its 'United States value.' Importers would have to submit a U.S. value statement at entry. CBP would verify values and send disputed valuations to the U.S. International Trade Commission for revision. Appraising on U.S. market prices raises the risk of higher duties and adds compliance work for importers.
More funding for trade commission staff
If enacted, the bill would authorize $3.6 million for FY2025 and $3.0 million for FY2026 and each fiscal year after. The money would let the U.S. International Trade Commission hire staff and improve information technology. These are authorizations only; Congress must appropriate the funds before spending can occur.
No $800 duty-free for covered nations
If enacted, the bill would keep the $800 de minimis rule but bar duty-free entry for any article that originates in a 'covered nation.' The Secretary may name other exceptions. This change would apply to entries on or after 15 days after enactment. Households buying low-value parcels from covered nations could pay duties or taxes where they paid none before.
Sponsors & CoSponsors
Sponsor
Tom Cotton
AR • R
Cosponsors
Jim Banks
IN • R
Sponsored 1/23/2025
Josh Hawley
MO • R
Sponsored 1/23/2025
Pete Ricketts
NE • R
Sponsored 3/11/2025
Roll Call Votes
No roll call votes available for this bill.
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