CANADA Act
- Bill Number
- H.R. 4899
- Origin Chamber
- House
- Congress
- 119th Congress, Session 1
- Policy Area
- Foreign Trade and International Finance
- Status
- Introduced
- Latest Action
- 2025-08-05: Referred to the House Committee on Ways and Means.
- Last Updated
- 2026-05-18T11:42:14Z
AI-Generated Summary
Purpose
The legislation, titled the "Creating Access to Necessary American-Canadian Duty Adjustments Act" (or "CANADA Act"), aims to provide relief to small businesses by exempting their imported goods from specific import duties. These duties stem from a national emergency declared by the President on February 1, 2025, which appears related to trade adjustments, particularly with Canada.
Key Provisions
- Exemption from Duties: Goods imported by or for the use of "small business concerns" (as defined under the Small Business Act, which generally includes independently owned businesses with limited employees and revenue) are exempt from duties imposed by Executive Order 14193 (issued February 1, 2025, and published in the Federal Register), as amended by Executive Orders 14197 and 14226.
- Scope: The exemption applies specifically to imports for small businesses, leaving duties in place for larger entities or non-qualifying imports.
- Short Title: The bill is formally cited as the CANADA Act.
Significant Changes to Existing Law
- This introduces a targeted carve-out to the duties established under the 2025 national emergency declaration, which previously applied broadly to certain imports without exceptions for business size.
- It modifies the enforcement of executive orders related to trade emergencies by creating a new category of exemptions based on the importer's status as a small business, without altering the underlying emergency declaration itself.
Potential Impacts
- On Small Businesses: Reduces costs for importing goods, potentially easing financial burdens and supporting competitiveness, especially for U.S. small businesses reliant on Canadian or other affected imports.
- On Government Agencies: The U.S. Customs and Border Protection (or similar agencies) may need to implement verification processes to confirm small business status, increasing administrative workload but promoting targeted economic relief.
- On Citizens and Economy: Could benefit American consumers and small business owners by lowering prices on goods, while stimulating cross-border trade; however, it might reduce overall tariff revenue for the federal government.
- On International Relations: Likely strengthens U.S.-Canada trade ties by mitigating duties' effects on smaller U.S. importers, potentially reducing tensions if the emergency involves bilateral trade disputes.
Main Stakeholders Affected
- Small Businesses: Primary beneficiaries, gaining cost savings on imports.
- Importers and Exporters: U.S. small business importers and their foreign suppliers (e.g., Canadian firms) may see increased trade volume.
- Larger Corporations: Potentially disadvantaged if they face full duties without exemptions, shifting competitive dynamics.
- Government Entities: Congress (via Ways and Means Committee oversight), executive agencies enforcing trade (e.g., Department of Commerce, U.S. Trade Representative), and the Treasury (handling duties).
- Consumers: Indirectly affected through potential price stabilization or reductions on imported goods.
Notable Legal, Constitutional, or Political Implications
- Legal: Relies on the Small Business Act's definition for eligibility, which could lead to challenges over verification or disputes on what qualifies as a "small business concern." It does not override the President's emergency powers but limits their application, potentially setting a precedent for future targeted exemptions in trade policy.
- Constitutional: Aligns with Congress's authority under Article I to regulate commerce and impose duties, providing a check on executive trade actions without directly challenging the national emergency declaration.
- Political: Bipartisan sponsorship (by Rep. Pappas and Rep. Goodlander) suggests appeal across party lines for small business support; however, it may spark debate on fairness to larger businesses or the effectiveness of emergency tariffs in addressing national security or economic goals.
This summary was generated by AI and may contain inaccuracies. Refer to the official source document for the authoritative text.
Sponsor
Cosponsors (1)
Rep. Goodlander, Maggie [D-NH-2]
Recent Actions
- 2025-08-05: Referred to the House Committee on Ways and Means.
- 2025-08-05: Introduced in House
- 2025-08-05: Introduced in House
Bill Versions
- Creating Access to Necessary American-Canadian Duty Adjustments Act — issued 2025-08-05 — PDF (2 pages)