This legislation aims to fundamentally alter trade relations between the United States and the People's Republic of China. Citing China's non-compliance with trade agreements and its state-led economic practices, the bill immediately suspends normal trade relations (NTR) with China, removing its access to lower tariff rates. This action is based on a sense of Congress that China's current trade status threatens national security and undermines efforts to build resilient supply chains. Upon enactment, the President is directed to revise the Harmonized Tariff Schedule of the United States (HTS) to apply higher duties to Chinese imports. Most articles will face a minimum duty of 35 percent ad valorem , while a list of specified critical articles, including certain chemicals, machinery, electronics, and defense-related goods, will be subject to a minimum of 100 percent ad valorem . These duty increases will be phased in over five years, starting with 10 percent of the increase after 180 days and reaching 100 percent after five years. For articles imported exclusively from China, the bill mandates the establishment of tariff-rate quotas (TRQs) , set at the difference between U.S. consumption and domestic production. In-quota articles will initially retain pre-enactment duty rates for three years, then gradually transition to the new higher rates over an additional four years, while above-quota articles will face a 100 percent ad valorem duty immediately. The International Trade Commission (ITC) is tasked with providing necessary data for these determinations. The President gains additional authority to further increase duties or even prohibit imports from China if necessary to counter U.S. dependence, penalize unfair trade practices, or address national security threats and human rights violations. Furthermore, the bill changes how Chinese merchandise is valued for customs purposes, requiring appraisal based on its "United States value" and eliminating China's eligibility for the duty-free de minimis import exemption for articles originating from covered nations. A dedicated trust fund will be established, funded by the increased duties collected on Chinese imports. This fund is designated to compensate U.S. producers, particularly in agriculture and critical sectors like semiconductors and aircraft, for lost revenue resulting from any retaliatory actions by China. Any remaining funds at the end of a fiscal year will be transferred to the Department of Defense to acquire specific munitions for the defense of Taiwan and other Indo-Pacific allies. The trust fund and its requirements will terminate after 10 years, with any remaining funds transferred to the general fund for deficit reduction.