S3868-118

2. Duties on motor vehicles produced in or by the People's Republic of China Notwithstanding any other provision of law, there shall be imposed with respect to each covered article imported into the United States a duty of $20,000, subject to adjustment under subsection (b). The Secretary of the Treasury shall adjust the amount of the duty provided for under subsection (a) on October 1, 2025, and at the beginning of each fiscal year thereafter, to reflect the percentage (if any) of the increase in the average of the Consumer Price Index for the preceding 12-month period compared to the Consumer Price Index for fiscal year 2024. In adjusting under paragraph (1) the amount of the duty provided for under subsection (a), the Secretary— shall round the amount of any increase in the Consumer Price Index to the nearest dollar; and may ignore any such increase of less than 1 percent. In this section: The term Consumer Price Index means the Consumer Price Index for All Urban Consumers published by the Bureau of Labor Statistics of the Department of Labor. The term control has the meaning given that term in section 800.208 of title 31, Code of Federal Regulations (as in effect on the date of the enactment of this Act). The term covered article means an article— classified under chapter 8703 of the Harmonized Tariff Schedule of the United States; and produced or manufactured, or that underwent final assembly— in the People's Republic of China; or by a person of the People's Republic of China. The term entity owned, controlled, directed, or operated by a person of the People's Republic of China includes any entity for which, on any date during the most recent 12-month period, not less than 25 percent of the equity interests in such entity are held directly or indirectly by 1 or more persons of the People's Republic of China, including through— interests in co-investment vehicles, joint ventures, or similar arrangements; or a derivative financial instrument or contractual arrangement between the entity and a person of the People's Republic of China, including any such instrument or contract that seeks to replicate any financial return with respect to such entity or interest in such entity. The term person of the People's Republic of China means— the Government of the People's Republic of China; any agency, instrumentality, official, or agent of that Government; any entity the headquarters of which are located in the People's Republic of China; any entity organized under the laws of the People’s Republic of China; any entity substantively involved in the industrial policies or military-civil fusion strategy of the People’s Republic of China, including by accepting funding from, performing a service for, or receiving a subsidy from the People’s Republic of China related to such policies or strategy; or any entity owned, controlled, directed, or operated by an entity described in any of subparagraphs (A) through (E).