WASHINGTON — Arguing that it will take strong medicine to make China play fair on trade, U.S. Sen. Lindsey Graham, R-S.C., this week will introduce a bill to slap a 27.5 percent tariff on every item Americans import from China.

“The Chinese are going to continue to manipulate their currency, steal intellectual property and ignore trade treaties until there’s a consequence,” he said.

American manufacturers, employees and unions have long complained that China pegs its currency as much as 40 percent lower than its actual worth, making Chinese goods more affordable to consumers around the world.

Graham’s bill is getting a warm reception from manufacturers hit hard by Chinese rivals.

“Clearly, something’s got to be done,” said Jock Nash, lobbyist for Spartanburg-based textile company Milliken & Co. “We support Senator Graham’s bill. He should just double the percentage.”

The Bush administration, however, agrees with U.S. business leaders who look upon tariffs as a threat to China that could backfire. Tariffs, they argue, only lead to retaliatory tariffs.

“Negotiating with someone is a lot more effective than whacking them over the head with a blunt instrument,” said Bill Morley, vice president for congressional relations at the U.S. Chamber of Commerce.

The bill, co-sponsored by U.S. Sen. Charles Schumer, D-N.Y., might not get far in Congress, Morley predicts. It died in committee last year.

Graham might be simply trying to send a warning to China, Morley said, but Graham insists his proposal has teeth.

“If we can get the bill to the floor” of the Senate, he said, “it would have a 50-50 chance.”

Reach Markoe at (202) 383-6023 or lmarkoe@krwashington.com