U.S. Weighs Cost of Stripping China’s Permanent Normal Trade Status
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Containers are unloaded from a cargo ship at the Port of Los Angeles in California, the U.S., on Feb. 20, 2026, local time. Photo: VCG
The U.S. International Trade Commission said Thursday it would launch an investigation into the economic consequences of revoking China’s permanent normal trade status over a six-year period, with findings expected to be released by Aug. 21.
A core tenet of the World Trade Organization is that member nations grant each other unconditional most-favored-nation treatment — a designation known in U.S. trade law as Permanent Normal Trade Relations, or PNTR.
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- The USITC will investigate the effects of revoking China’s permanent normal trade status, with a report due by August 21.
- Revoking PNTR could subject Chinese goods to significantly higher “Column 2” tariffs; only Cuba, North Korea, Russia, and Belarus currently face these rates.
- President Trump directed the inquiry after taking office in January 2025; scenarios include both immediate and phased tariff increases on Chinese imports.
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What Happened When
- 2000：
- U.S. Congress approved China’s Permanent Normal Trade Relations (PNTR) status.
- Before January 1, 2002：
- U.S. Congress reviewed and voted on China’s trade status annually under the Jackson-Vanik Amendment.
- December 2001：
- President George W. Bush signed the order granting China PNTR following the country’s formal entry into the WTO.
- As of January 1, 2002：
- China was effectively granted PNTR status by the United States.
- January 2025：
- Donald Trump assumed office as U.S. President and directed trade officials to evaluate proposals to strip China of its permanent trade status.
- February 26, 2026：
- The U.S. International Trade Commission (USITC) announced the launch of an investigation into the economic consequences of revoking China’s PNTR status.
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