New bill would add 10% tariff on all imports, hit China with up to 100%

What does this do?

HR 4978 imposes a new 10 percent tax on all goods imported into the United States, on top of existing tariffs. Goods from China would face at least 35 percent in additional taxes, rising to at least 100 percent for strategically important items such as computer chips and steel. The bill also expands mandatory government security reviews to cover foreign governments from countries of concern that buy or lease U.S. land and build new facilities on it, even when no existing American company is being purchased.

Who does it affect?

American consumers, businesses that rely on imported parts or materials, and companies that trade with China would be directly affected. Foreign companies — especially Chinese ones — seeking to build facilities in the United States would face new government scrutiny and possible rejection of their plans.

Why does it matter?

The China-specific tariff increases would be phased in gradually over several years, and the President could adjust rates but not eliminate them entirely. The bill also changes how Chinese goods are valued for tax purposes, using the U.S. retail price rather than the export price China charges, which would generally result in higher taxes being collected.

What does it cost, and who pays?

• 10% tariff added on all U.S. imports
• At least 35% on most Chinese goods
• Up to 100% on strategic Chinese items