What happens if China loses normal U.S. trade relations?

Economists say Washington revoking status could boost inflation, erode GDP

Washington's granting of permanent normal trade relations to China has resulted in cheaper Chinese imports but fueled a U.S. trade deficit. © Reuters

PAK YIU, Nikkei staff writer

October 1, 2024 21:48 JST

NEW YORK -- Republicans in the U.S. Congress introduced a bill last week to end permanent normal trade relations with China, claiming that the trade status granted to Beijing has led to unfairly imbalanced relations between the world's two largest economies.

Revoking PNTR has been a threat used by politicians. Republican presidential candidate Donald Trump last year said he would "completely eliminate" U.S. dependence on China by ending the arrangement.