Reclaim Trade Powers Act

Bill Number

S. 4049

Origin Chamber

Senate

Congress

119th Congress, Session 2

Policy Area

Foreign Trade and International Finance

Status

Introduced

Latest Action

2026-03-11: Read twice and referred to the Committee on Finance.

Last Updated

2026-03-24T01:26:03Z

AI-Generated Summary

Summary of S. 4049: Reclaim Trade Powers Act

Purpose

This bill aims to eliminate the President's authority to impose temporary restrictions on imports to address balance-of-payments issues (a situation where a country's foreign currency payments exceed its receipts, potentially harming the economy). By repealing this provision, the legislation seeks to restore greater congressional control over trade policy decisions.

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 allowed the President to apply temporary import surcharges or quotas for balance-of-payments purposes.
• Clerical Amendment: Updates the table of contents in the Trade Act of 1974 by removing the entry for Section 122.
• Conforming Amendment: Modifies Section 127(b) of the Trade Act of 1974 (19 U.S.C. 2137(b)) by deleting a reference to actions under Section 122(c), ensuring consistency in the law.

Significant Changes to Existing Law

• Removes the executive branch's unilateral power to enact broad import restrictions without congressional approval, shifting trade authority more firmly to Congress.
• Eliminates a tool that has been part of U.S. trade law since 1974, potentially limiting emergency responses to economic imbalances but preventing potential misuse of such powers.

Potential Impacts

• On Government Agencies: The Office of the U.S. Trade Representative and other executive agencies may lose flexibility in addressing sudden economic pressures, requiring legislative action for similar measures in the future.
• On Citizens and Businesses: Could protect against sudden import taxes or limits that raise consumer prices or disrupt supply chains, but might slow responses to economic crises affecting jobs or inflation.
• On International Relations: May signal a more predictable U.S. trade environment to trading partners, reducing risks of unilateral actions that could escalate trade disputes, though it might limit U.S. leverage in negotiations with countries running large trade surpluses.

Main Stakeholders Affected

• Congress: Gains enhanced oversight of trade policy, aligning with the constitutional role of Congress in regulating commerce.
• Executive Branch (President and Agencies): Loses a specific authority, potentially requiring new legislative processes for balance-of-payments actions.
• U.S. Businesses and Importers: Benefits from reduced risk of abrupt trade barriers, but could face challenges if economic tools are needed quickly.
• Consumers and Workers: Indirectly affected through potential stability in import prices and job protections, though slower policy responses might impact economic recovery.
• Foreign Governments and Exporters: May experience less uncertainty in U.S. market access, fostering stronger bilateral trade ties.

Notable Legal, Constitutional, or Political Implications

• Constitutional: Reinforces Congress's Article I powers over foreign commerce by curbing executive discretion, potentially setting a precedent for rebalancing trade authorities.
• Legal: Streamlines the Trade Act of 1974 by removing outdated provisions; no new enforcement mechanisms are added, but it could invite future litigation if economic emergencies arise without this tool.
• Political: Introduced by a bipartisan group of senators, it reflects concerns over executive overreach in trade, possibly influencing broader debates on congressional vs. presidential powers amid ongoing trade tensions.

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

Sponsor

Sen. Kaine, Tim [D-VA]

Cosponsors (15)

Sen. Warnock, Raphael G. [D-GA], Sen. Wyden, Ron [D-OR], Sen. King, Angus S., Jr. [I-ME], Sen. Coons, Christopher A. [D-DE], Sen. Welch, Peter [D-VT], Sen. Warner, Mark R. [D-VA], Sen. Van Hollen, Chris [D-MD], Sen. Klobuchar, Amy [D-MN], Sen. Rosen, Jacky [D-NV], Sen. Alsobrooks, Angela D. [D-MD], Sen. Heinrich, Martin [D-NM], Sen. Murray, Patty [D-WA], Sen. Durbin, Richard J. [D-IL], Sen. Schiff, Adam B. [D-CA], Sen. Shaheen, Jeanne [D-NH]

Recent Actions

• 2026-03-11: Read twice and referred to the Committee on Finance.
• 2026-03-11: Introduced in Senate

Bill Versions

• Reclaim Trade Powers Act — issued 2026-03-11 — PDF (2 pages)