US SB206

Suspends China's Permanent Normal Trade Relations (PNTR) status, reverting Chinese imports from column 1 (most-favored-nation) to column 2 tariff rates in the Harmonized Tariff Schedule

Establishes minimum tariffs of 35% ad valorem on most Chinese imports, with 100% ad valorem rates on critical items including minerals, pharmaceuticals, semiconductors, batteries, electric vehicles, aircraft, and military equipment

Phases in duty increases over 5 years: 10% at 180 days, 25% at 2 years, 50% at 4 years, and 100% at 5 years after enactment

Creates a trust fund from Chinese import duties to compensate U.S. producers harmed by Chinese retaliation, with priority given to agricultural commodities, semiconductors, aircraft, and mineral fuels; remaining funds directed to Department of Defense for weapons procurement

Eliminates the de minimis duty exemption (currently $800) for goods from China and other "covered nations," requiring all Chinese imports to be subject to duties and formal entry procedures