Reclaim Trade Powers Act

Bill Number

H.R. 2459

Origin Chamber

House

Congress

119th Congress, Session 1

Policy Area

Foreign Trade and International Finance

Status

Introduced

Latest Action

2025-03-27: Referred to the House Committee on Ways and Means.

Last Updated

2026-03-28T08:06:18Z

AI-Generated Summary

Purpose

The "Reclaim Trade Powers Act" (H.R. 2459) aims to eliminate a specific authority granted to the President under existing trade law. This authority allows temporary surcharges (extra fees) on imports to address large U.S. balance of payments deficits—situations where the U.S. spends more on imports and foreign investments than it earns from exports and investments abroad. By removing this power, the bill seeks to limit certain executive actions in trade policy.

Key Provisions

• Repeal of Section 122: The bill fully repeals Section 122 of the Trade Act of 1974 (codified at 19 U.S.C. 2132), which previously authorized the President to impose surcharges of up to 15% on dutiable (taxable) imports for up to 150 days to correct balance of payments issues.
• Short Title: The legislation is titled the "Reclaim Trade Powers Act."
• No additional provisions are included; the bill is concise and focused solely on this repeal.

Significant Changes to Existing Law

• This repeal removes a longstanding but rarely used tool from the Trade Act of 1974, enacted in 1974 to give the President flexibility in managing international trade imbalances.
• It eliminates the President's ability to unilaterally apply broad import surcharges without congressional approval specifically for balance of payments purposes, though other trade authorities (e.g., for national security or unfair trade practices) remain intact.

Potential Impacts

• On Government Agencies: The executive branch, particularly the Office of the U.S. Trade Representative and the Department of the Treasury, loses a mechanism for quick responses to economic imbalances, potentially requiring reliance on other laws or congressional action for similar measures.
• On Citizens and Businesses: U.S. importers and consumers may benefit from reduced risk of sudden import fees, potentially lowering costs for imported goods. Exporters in other countries could face less uncertainty in U.S. market access.
• On International Relations: This could signal a more predictable U.S. trade environment to trading partners, reducing the threat of unilateral surcharges in disputes over economic imbalances. However, it might limit U.S. leverage in negotiations with countries running trade surpluses with the U.S.

Main Stakeholders Affected

• U.S. Executive Branch: Loses discretionary power in trade enforcement.
• Importers and Businesses: Gain protection against potential surcharges on imports.
• Consumers: Could see more stable prices for imported products.
• International Trading Partners: Benefit from diminished risk of U.S.-imposed barriers tied to balance of payments.
• Congress: Gains indirect oversight by curbing executive authority, aligning with efforts to reclaim legislative control over trade policy.

Notable Legal, Constitutional, or Political Implications

• Legal: The repeal simplifies the Trade Act of 1974 by removing an outdated provision, potentially reducing legal challenges related to its use (though it has been invoked sparingly since 1974). It does not affect other presidential trade powers under laws like Section 301 of the Trade Act or Section 232 of the Trade Expansion Act.
• Constitutional: Reinforces Congress's constitutional role in regulating commerce (Article I, Section 8), by limiting executive discretion without new delegations of authority.
• Political: Introduced by bipartisan sponsors, it reflects a push to constrain presidential trade actions amid debates over tariffs and economic policy. If enacted, it could set a precedent for further congressional reassertion of trade oversight, especially in an era of frequent use of executive trade tools.

This summary was generated by AI and may contain inaccuracies. Refer to the official source document for the authoritative text.

Sponsor

Rep. Panetta, Jimmy [D-CA-19]

Cosponsors (21)

Rep. Beyer, Donald S. [D-VA-8], Rep. DelBene, Suzan K. [D-WA-1], Rep. Sewell, Terri A. [D-AL-7], Rep. Schneider, Bradley Scott [D-IL-10], Rep. Whitesides, George [D-CA-27], Rep. Thanedar, Shri [D-MI-13], Rep. Costa, Jim [D-CA-21], Rep. Quigley, Mike [D-IL-5], Rep. Moskowitz, Jared [D-FL-23], Rep. Fletcher, Lizzie [D-TX-7], Rep. Sherrill, Mikie [D-NJ-11], Rep. Titus, Dina [D-NV-1], Rep. Kamlager-Dove, Sydney [D-CA-37], Rep. Stanton, Greg [D-AZ-4], Rep. Walkinshaw, James R. [D-VA-11], Rep. Horsford, Steven [D-NV-4], Rep. Strickland, Marilyn [D-WA-10], Rep. Cleaver, Emanuel [D-MO-5], Rep. Davids, Sharice [D-KS-3], Rep. McBride, Sarah [D-DE-At Large], Rep. McDonald Rivet, Kristen [D-MI-8]

Recent Actions

• 2025-03-27: Referred to the House Committee on Ways and Means.
• 2025-03-27: Introduced in House
• 2025-03-27: Introduced in House

Bill Versions

• Reclaim Trade Powers Act — issued 2025-03-27 — PDF (2 pages)