The U.S. International Trade Commission (USITC) said today, Feb. 27, that it will launch an investigation into the potential economic impact over a six-year period of revoking China’s “Permanent Normal Trade Relations” (PNTR) status. The move could result in higher tariffs on goods imported from China.
According to Reuters, the USITC said in a statement that the investigation is being conducted at the request of Congress under an appropriations bill. The results are expected to be released by Aug. 21.
After taking office in January 2025, President Donald Trump instructed trade and commerce officials to evaluate legislative proposals to revoke China’s PNTR status. The United States first granted China PNTR status in 2000, enabling China to join the World Trade Organization (WTO) and rise to become the world’s largest manufacturing nation.
Since returning to office, Trump has imposed new tariffs on imports from China. Tariffs on Chinese goods once reached as high as 145 percent last year, but following a series of trade negotiations, they have been reduced to around 20 percent. However, the U.S. Supreme Court ruled last week that Trump’s previously implemented reciprocal tariffs were unlawful.
The USITC said the investigation will focus on industries most directly affected by raising tariffs to non–“Most Favored Nation” (MFN) rates, analyzing the impact on U.S. trade, production, and prices.
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The commission will also evaluate an alternative scenario in which, if Congress revokes PNTR status, tariffs on key products involving national security would be gradually increased over a five-year period.
The USITC said the public may submit written comments on the impact of raising tariffs on Chinese goods, with a deadline of April 13. Due to time constraints, the commission does not plan to hold a public hearing.
