A SPECIAL House committee focused on china is calling for altering the way the US treats Chinese-made goods, possibly subjecting them to higher tariffs even if its risks increased tensions between the two economic superpowers.
The report does not specifically call for repealing China's preferential trade status, but it does recommend placing China in a new trading category that some liken to a de facto repeal, reports Associated Press.
The committee's chairman said he envisions a process where Congress would determine regularly which economic sectors would be subject to higher tariffs and which would see lower tariffs.
Lawmakers in both parties endorsed the proposal, a reflection of the growing willingness in Congress to build on the tariffs enacted during Donald Trump's presidency, even if it risks retaliatory actions from China that would harm many farmers, ranchers and US exporters.
The committee crafted the recommendation after several months of deliberation and hearings. Members hope that the nearly 150 recommendations in the report, many focused on trade, can be adapted into legislation that Congress could pass before next year's elections.
'You've got to play by the rules, and if you're not, we've got to protect our businesses from being undercut and destroyed,' said Representative Raja Krishnamoorthi, the ranking Democrat on the committee.
A little more than two decades ago, Congress granted China preferential trade treatment in the form of lower tariffs and trade barriers. The committee essentially called for ending it. The shift would be phased in over a short period of time to give the US economy time to adjust.
Tariffs increase the cost of goods for the importer and are generally passed along to the consumer. The committee calls for using the revenue raised from increased tariffs to expand market opportunities for US producers and to advance national security.
'It's a strategy that of course involves tradeoffs, but I think a strategy built on the recognition, if nothing else, that the status quo is not working,' said Representative Mike Gallagher, the Republican chairman of the committee.
In the event of retaliation from China, the committee said Congress should also consider additional spending to offset the harm done to farmers, ranchers and other US workers.
The US Chamber of Commerce said China has failed to live up to the structural reforms it promised when it joined the World Trade Organization and gained permanent normal trade relations status with the US. It said China deserves criticism and a strong policy response. But instead of a 'de facto repeal' of China's trade status, it called for more targeted approaches through existing law.
As part of its recommendations, the House committee is also calling for a lower threshold by which imports can come into the US duty-free. It seeks to reduce the current threshold for such treatment, now at US$800, to an unspecified, lower amount, 'with particular focus on foreign adversaries,' including China.
SeaNews Turkey
The report does not specifically call for repealing China's preferential trade status, but it does recommend placing China in a new trading category that some liken to a de facto repeal, reports Associated Press.
The committee's chairman said he envisions a process where Congress would determine regularly which economic sectors would be subject to higher tariffs and which would see lower tariffs.
Lawmakers in both parties endorsed the proposal, a reflection of the growing willingness in Congress to build on the tariffs enacted during Donald Trump's presidency, even if it risks retaliatory actions from China that would harm many farmers, ranchers and US exporters.
The committee crafted the recommendation after several months of deliberation and hearings. Members hope that the nearly 150 recommendations in the report, many focused on trade, can be adapted into legislation that Congress could pass before next year's elections.
'You've got to play by the rules, and if you're not, we've got to protect our businesses from being undercut and destroyed,' said Representative Raja Krishnamoorthi, the ranking Democrat on the committee.
A little more than two decades ago, Congress granted China preferential trade treatment in the form of lower tariffs and trade barriers. The committee essentially called for ending it. The shift would be phased in over a short period of time to give the US economy time to adjust.
Tariffs increase the cost of goods for the importer and are generally passed along to the consumer. The committee calls for using the revenue raised from increased tariffs to expand market opportunities for US producers and to advance national security.
'It's a strategy that of course involves tradeoffs, but I think a strategy built on the recognition, if nothing else, that the status quo is not working,' said Representative Mike Gallagher, the Republican chairman of the committee.
In the event of retaliation from China, the committee said Congress should also consider additional spending to offset the harm done to farmers, ranchers and other US workers.
The US Chamber of Commerce said China has failed to live up to the structural reforms it promised when it joined the World Trade Organization and gained permanent normal trade relations status with the US. It said China deserves criticism and a strong policy response. But instead of a 'de facto repeal' of China's trade status, it called for more targeted approaches through existing law.
As part of its recommendations, the House committee is also calling for a lower threshold by which imports can come into the US duty-free. It seeks to reduce the current threshold for such treatment, now at US$800, to an unspecified, lower amount, 'with particular focus on foreign adversaries,' including China.
SeaNews Turkey
