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Lawmakers propose Industrial Bank funded by China tariff revenue
The plan would funnel up to 50% of section 301 tariff proceeds into a new manufacturing bank, capped at $15 billion per year.
Democratic lawmakers have introduced a bill to create a new bank aimed at strengthening domestic manufacturing, with funding tied to tariffs on imports from China. The measure, titled the Industrial Bank for American Manufacturing Act, would provide up to $15 billion each year.
According to the bill’s outline described by the Guardian Business, the bank would use existing section 301 tariff revenue to fund grants, loans, and equity investments. It would direct up to 50% of collected revenue from tariffs on imports from the People’s Republic of China into the program, rather than depositing the funds into the US Treasury’s general fund.
The lawmakers, led by US representatives Ro Khanna, Tom Suozzi, and Debbie Dingell, said the financing would be used to rebuild manufacturing capacity in areas affected by industrial decline. Khanna cited targets including Johnstown, Pennsylvania, Lordstown, Ohio, the Downriver region of Michigan near Detroit, and the Lower Bucks County area along the Delaware River corridor in Pennsylvania.