Attributing the increasing trade deficit between the US and China to the unfair valuation of the Chinese Yuan and currency manipulation, a unanimous consent agreement was reached in the US Senate, under which the Senate Majority Leader will, no later than July 27, 2005, call up Bill S. 295 for Senate consideration. S. 295 would impose an additional 27.5% duty on all imports from China. This penalty corresponds to their estimated currency advantage. Reports from economists estimate that China undervalues its currency between 15 and 40 percent. Therefore the proposed 27.5% duty on Chinese imports represents the midpoint range.

Furthermore, S 295 would provide for a negotiation period between the US and China to revalue its currency. At the end of the negotiation period, if the President determines China has developed and started actual implementation of a plan to revalue its currency, he may delay the imposition of the tariff for an additional 12 months.

To view S. 295, as introduced, please visit the following URL: