Senators advance bill imposing tariffs on Chinese imports.

Senators Charles Schumer (D-N.Y.) and Lindsey Graham (R-S.C.) struck a deal with Senate leaders to advance their bill imposing tariffs on Chinese imports unless that nation changes its currency laws. The senators tacked on the provision as an amendment to the State Dept. authorization bill but agreed to withdraw it in exchange for an up-or-down vote in July on a stand-alone bill (S.295).

During an April debate on the foreign policy bill (S.600), Senators refused to table or kill the amendment presented by Schumer and Graham.

China has been accused of intentionally suppressing the value of its currency, making Chinese goods artificially cheap in the U.S. and American goods more expensive in China. This increases the U.S. trade deficit and makes it hard for U.S. manufacturers to compete.

The Schumer-Graham bill would allow six months for negotiation on a currency agreement between the U.S. and China. If no agreement is reached, a 27.5% tariff on imports will be imposed. Under the agreement reached with the Senate leadership and Sens. Schumer and Graham, the Finance Committee will consider the legislation without amendments. If the committee does not move on it by July 27, the bill will move to the Senate floor with no amendments for an up-or-down vote. In return, Schumer and Graham agreed not to attach the measure as an amendment to other legislation.