USITC Investigates Impact of Revoking China's Trade Status

The U.S. International Trade Commission is investigating the effects of revoking China's permanent normal trade status, which could lead to higher tariffs on Chinese imports. This investigation follows President Donald Trump's directive and aims to assess potential impacts on U.S. industries. The report is due by August 21.

The U.S. International Trade Commission announced a new investigation on Thursday regarding the economic impact of potentially revoking China's permanent normal trade status over a six-year period. This action, initiated through a congressional appropriations bill, could result in increased tariffs on Chinese imports.

Since his inauguration in 2025, President Donald Trump has directed efforts to reassess the United States' trade relationship with China. Initially granted in 2000, China's permanent normal trade relations status facilitated its entry into the World Trade Organization, propelling its manufacturing sector. Recently, Trump's tariffs on Chinese imports, reaching 145% at their peak, were deemed illegal by the Supreme Court.

The USITC's report, expected by August 21, will study the effects of raised tariffs on U.S. trade and industry prices, also considering a five-year phase-in of tariffs for products critical to national security. Public comments are accepted until April 13, although no public hearing is scheduled due to time constraints.