To require the Congressional Budget Office to conduct an economic review of the economic impact of tariff modifications before implementation.

Bill Number

H.R. 4326

Origin Chamber

House

Congress

119th Congress, Session 1

Policy Area

Foreign Trade and International Finance

Status

Introduced

Latest Action

2025-07-10: Referred to the House Committee on Ways and Means.

Last Updated

2026-07-06T16:05:39Z

AI-Generated Summary

Purpose

This bill aims to promote informed decision-making in trade policy by requiring an independent economic analysis of proposed tariff changes before they are implemented. It ensures that the potential economic effects are publicly assessed to support transparency and accountability.

Key Provisions

• Mandatory Economic Review: Starting from the date of enactment, any change to a tariff or import duty (compared to the rate in place the day before enactment) cannot take effect until the Congressional Budget Office (CBO)—an nonpartisan agency that analyzes federal budget and economic issues—completes and publishes an economic review.
• Scope of Review: The review must evaluate the expected economic impact of the proposed tariff modification.
• Public Accessibility: The CBO is required to publish the review on a publicly available website of the office.

Significant Changes to Existing Law

• This introduces a new procedural hurdle for tariff modifications, which were previously adjustable by the executive branch (e.g., the President or trade agencies like the U.S. Trade Representative) without a mandatory pre-implementation economic review by the CBO.
• It applies specifically to changes made on or after the enactment date, creating a forward-looking requirement that did not exist before.

Potential Impacts

• On Government Agencies: Trade-related agencies (e.g., Department of Commerce or U.S. Customs and Border Protection) may face delays in implementing tariff changes, as they must wait for the CBO's review, potentially slowing responses to trade disputes or economic conditions.
• On Citizens and Businesses: Importers, exporters, and consumers could benefit from greater predictability in trade costs, as the review might highlight effects on prices, jobs, or supply chains; however, delays could prolong uncertainty in international trade.
• On International Relations: Tariff changes often serve as tools in negotiations with other countries; this requirement could affect the U.S.'s ability to act swiftly in trade talks, potentially influencing diplomatic leverage or responses to foreign tariffs.

Main Stakeholders Affected

• Congressional Budget Office (CBO): Gains a new responsibility to produce timely economic reviews, increasing its workload on trade matters.
• Legislative Branch: Enhances Congress's oversight of trade policy, as the reviews could inform debates or legislation.
• Executive Branch Trade Agencies: Must coordinate with or await CBO input, potentially shifting some control from the President to a congressional entity.
• Businesses and Industries: Particularly those involved in imports/exports (e.g., manufacturing, agriculture), who may use the reviews to prepare for or challenge tariff changes.
• General Public: Benefits from transparent economic data that could affect everyday costs like consumer goods prices.

Notable Legal, Constitutional, or Political Implications

• Legal Implications: The bill enforces a procedural delay on executive actions under existing trade laws (e.g., those authorizing presidential tariff adjustments), which could lead to court challenges if seen as overly restrictive on administrative authority.
• Constitutional Implications: It may raise questions about the balance of powers between Congress (via the CBO) and the executive branch, as tariffs historically fall under presidential foreign affairs powers; however, it aligns with Congress's constitutional role in regulating commerce.
• Political Implications: By mandating neutral economic analysis, the bill could reduce partisan influences on trade decisions but might politicize CBO reports if used in congressional debates; it was introduced by bipartisan sponsors, suggesting potential for cross-aisle support in trade policy reform.

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

Sponsor

Rep. Gottheimer, Josh [D-NJ-5]

Cosponsors (3)

Rep. Fields, Cleo [D-LA-6], Rep. Carson, André [D-IN-7], Rep. Titus, Dina [D-NV-1]

Recent Actions

• 2025-07-10: Referred to the House Committee on Ways and Means.
• 2025-07-10: Introduced in House
• 2025-07-10: Introduced in House

Bill Versions

• To require the Congressional Budget Office to conduct an economic review of the economic impact of tariff modifications before implementation. — issued 2025-07-10 — PDF (2 pages)