To impose additional duties on imports of goods into the United States.

Bill Number

H.R. 505

Origin Chamber

House

Congress

119th Congress, Session 1

Policy Area

Foreign Trade and International Finance

Status

Introduced

Latest Action

2025-01-16: Referred to the House Committee on Ways and Means.

Last Updated

2025-04-09T18:04:39Z

AI-Generated Summary

Purpose

This bill aims to protect U.S. economic interests by imposing additional tariffs (taxes on imports) on all goods entering the United States, with adjustments based on the country's overall trade balance in goods and services. The goal is to address trade deficits by making imports more expensive and potentially encouraging domestic production or balanced trade.

Key Provisions

• Initial Tariff Rate: Starting from the year of enactment, the President must impose a 10% ad valorem duty (a tax calculated as a percentage of the imported good's value) on all imports into the U.S.
• Annual Adjustments:
• If the U.S. had a trade deficit (imports exceeding exports) in goods and services for the previous calendar year, the tariff increases by an additional 5% of the good's value.
• If the U.S. had a trade balance (imports equaling exports) or surplus (exports exceeding imports) in the previous year, the tariff decreases by 5% of the good's value, but it cannot go below 0%.
• Additive Nature: These new duties are in addition to any existing tariffs or duties already required by other laws.
• Scope: Applies to all imported goods, with no specified exceptions in the bill text.

Significant Changes to Existing Law

• Introduces a new, mandatory tariff mechanism tied directly to annual U.S. trade performance, which is not currently part of U.S. trade law.
• Expands presidential authority to impose broad, automatic adjustments on tariffs without needing new legislation each year, building on but separate from existing tools like Section 301 of the Trade Act of 1974 (which allows targeted tariffs for unfair trade practices).
• Does not replace or modify current tariff schedules under the Harmonized Tariff Schedule of the United States but layers new duties on top of them.

Potential Impacts

• On Government Agencies: Increases revenue for the U.S. Treasury from tariffs, potentially funding government programs; requires agencies like U.S. Customs and Border Protection to administer and collect the duties, and the Office of the U.S. Trade Representative to monitor trade data for adjustments.
• On Citizens: Could raise prices for imported goods (e.g., electronics, clothing, vehicles), affecting consumers and businesses reliant on imports; might benefit U.S. manufacturers by making foreign goods less competitive.
• On International Relations: May strain trade ties with exporting countries (e.g., China, Mexico, Canada), prompting retaliatory tariffs or disputes at the World Trade Organization (WTO); could encourage bilateral trade negotiations to avoid escalation.

Main Stakeholders

• U.S. Importers and Businesses: Face higher costs for sourcing foreign goods, potentially disrupting supply chains.
• Consumers: Likely to see increased prices for everyday imported products.
• U.S. Exporters and Manufacturers: Could gain a competitive edge in the domestic market but risk retaliation abroad.
• Foreign Governments and Exporters: Major trading partners (e.g., EU countries, Asian economies) may be adversely affected, leading to diplomatic or legal challenges.
• U.S. Government: Executive branch (President, trade agencies) gains enforcement tools; Congress retains oversight through trade committees.

Notable Legal, Constitutional, or Political Implications

• Legal: Grants the President broad discretion to implement tariffs, aligning with constitutional powers over foreign commerce (Article I, Section 8), but could face challenges if seen as violating international agreements like WTO rules on non-discriminatory trade. The automatic adjustment formula introduces predictability but may require regulatory guidance to define "trade deficit" calculations.
• Constitutional: Reinforces Congress's delegation of trade authority to the executive, a common practice but sometimes debated for overreach.
• Political: Positions trade policy as a tool for economic nationalism; could spark partisan debates in Congress (e.g., over protectionism vs. free trade) and influence midterm or presidential elections by appealing to workers in import-competing industries. As an introduced bill, it requires House and Senate approval to become law, with referral to the Ways and Means Committee signaling focus on fiscal and trade policy.

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

Sponsor

Rep. Golden, Jared F. [D-ME-2]

Recent Actions

• 2025-01-16: Referred to the House Committee on Ways and Means.
• 2025-01-16: Introduced in House
• 2025-01-16: Introduced in House

Bill Versions

• To impose additional duties on imports of goods into the United States. — issued 2025-01-16 — PDF (2 pages)