CANADA Act
- Bill Number
- S. 2383
- Origin Chamber
- Senate
- Congress
- 119th Congress, Session 1
- Policy Area
- Foreign Trade and International Finance
- Status
- Introduced
- Latest Action
- 2025-07-22: Read twice and referred to the Committee on Finance.
- Last Updated
- 2026-05-15T18:25:48Z
AI-Generated Summary
Purpose
The legislation, titled the "Creating Access to Necessary American-Canadian Duty Adjustments Act" (CANADA Act), aims to provide relief to small businesses by exempting their imported goods from specific duties imposed under a national emergency declaration. This emergency, declared by the President on February 1, 2025, via Executive Order 14193 (and subsequent amendments), likely relates to trade adjustments, particularly with Canada, to ease financial burdens on smaller enterprises during economic pressures.
Key Provisions
- Exemption from Duties: Goods imported by or for the use of "small business concerns" are fully exempt from the duties outlined in the national emergency declaration (Executive Order 14193, as amended by Executive Orders 14197 and 14226).
- Definition of Small Business Concerns: The exemption applies to entities defined under section 3 of the Small Business Act (15 U.S.C. 632), which generally includes independently owned and operated businesses that are not dominant in their field and meet size standards set by the Small Business Administration (SBA), such as limits on employees or revenue.
Significant Changes to Existing Law
- This bill introduces a targeted carve-out to the duties established by the President's executive orders under the national emergency. Previously, these duties applied broadly to certain imports without exceptions for small businesses, so the legislation modifies their enforcement by creating a new exemption category specifically for small entities.
- It does not alter the underlying emergency declaration or the Small Business Act's definitions but limits the scope of duty application, effectively amending the executive orders' impact on trade policy.
Potential Impacts
- On Government Agencies: The U.S. Customs and Border Protection (CBP) and the Department of the Treasury would need to implement verification processes to confirm small business status for exemptions, potentially increasing administrative workload but reducing overall duty collections from this sector. The SBA may play a role in certifying eligible businesses.
- On Citizens and Businesses: Small businesses importing goods (e.g., from Canada) could see reduced costs, improving cash flow, competitiveness, and access to necessary supplies. Larger businesses, however, would not benefit, potentially shifting market dynamics.
- On International Relations: By easing duties on imports for small U.S. firms, the bill could facilitate smoother trade with Canada and other affected partners, reducing tensions from the emergency measures and supporting bilateral economic ties without broadly dismantling the emergency framework.
Main Stakeholders Affected
- Small Businesses: Primary beneficiaries, particularly those reliant on cross-border imports for operations, such as manufacturers, retailers, or service providers sourcing materials.
- Importers and Suppliers: Entities handling imports for small businesses would experience simplified customs processes and lower tariffs.
- U.S. Government Entities: Including the Senate Committee on Finance (where the bill was referred), CBP for enforcement, and the executive branch for aligning with emergency powers.
- Canadian and Other Foreign Exporters: Indirectly positively affected through increased U.S. small business demand for their goods, potentially boosting export volumes.
- Larger Corporations: Potentially disadvantaged if small competitors gain a cost advantage, though the overall trade environment remains regulated.
Notable Legal, Constitutional, or Political Implications
- Legal Implications: The bill respects the President's authority under the National Emergencies Act (50 U.S.C. §§ 1601 et seq.) to declare emergencies but uses congressional power to limit executive-imposed duties, demonstrating legislative oversight of trade emergencies. It may require regulations to define "imported by or for the use of" small businesses, avoiding disputes over eligibility.
- Constitutional Implications: Reinforces Congress's constitutional role in regulating commerce (Article I, Section 8) by checking executive trade actions, without challenging the emergency's validity.
- Political Implications: Introduced by a bipartisan group of senators, it signals cross-aisle support for protecting small businesses amid trade disputes, potentially influencing future emergency-related legislation. If enacted, it could set a precedent for targeted exemptions in national security or economic emergencies, balancing protectionism with domestic economic support.
This summary was generated by AI and may contain inaccuracies. Refer to the official source document for the authoritative text.
Sponsor
Cosponsors (7)
Sen. Schumer, Charles E. [D-NY], Sen. Kaine, Tim [D-VA], Sen. Shaheen, Jeanne [D-NH], Sen. Markey, Edward J. [D-MA], Sen. Murkowski, Lisa [R-AK], Sen. Collins, Susan M. [R-ME], Sen. Wyden, Ron [D-OR]
Recent Actions
- 2025-07-22: Read twice and referred to the Committee on Finance.
- 2025-07-22: Introduced in Senate
Bill Versions
- Creating Access to Necessary American-Canadian Duty Adjustments Act — issued 2025-07-22 — PDF (2 pages)