Leveling the Playing Field 2.0 Act

Bill Number

S. 691

Origin Chamber

Senate

Congress

119th Congress, Session 1

Policy Area

Foreign Trade and International Finance

Status

Introduced

Latest Action

2025-02-24: Read twice and referred to the Committee on Finance.

Last Updated

2026-05-11T16:34:50Z

AI-Generated Summary

Purpose of the Legislation

The Leveling the Playing Field 2.0 Act amends the Tariff Act of 1930 to strengthen the enforcement of antidumping (AD) and countervailing duty (CVD) laws. These laws protect U.S. industries from unfair foreign trade practices, such as selling goods below fair market value (antidumping) or benefiting from government subsidies (countervailing duties). The bill aims to streamline investigations, address market distortions caused by foreign governments, prevent evasion of duties, and treat currency undervaluation as a subsidy, ultimately leveling the playing field for U.S. producers.

Key Provisions

The bill is organized into six titles, each targeting specific aspects of AD and CVD administration:

• Title I: Successive Investigations
• Establishes special rules for "successive investigations" (follow-up probes into similar imports after a prior affirmative finding of injury).
• Requires the U.S. International Trade Commission (ITC) to consider prior investigations when assessing injury to U.S. industries, including effects on trade and finances, and to include past determinations in the record.
• Prohibits dismissing injury claims solely based on recent industry improvements tied to prior relief.
• Mandates faster timelines for initiating and issuing determinations in successive cases, with extensions only if requested by the petitioner (U.S. industry filer).
• Defines terms like "concurrent investigation" (ongoing related probe) and "recently completed investigation" (finished within 2 years).

• Title II: Responding to Market Distortions
• Expands CVD rules to cover "cross-border subsidies" from third countries facilitated by the exporting country, including those to multinational corporations.
• Modifies "ordinary course of trade" (normal market conditions for pricing comparisons) to include situations with insufficient comparable foreign products or distorted production costs.
• Adjusts export price calculations for duty drawbacks (refunds on imported materials used in exports) to cap them at production costs.
• Allows the Department of Commerce (as the administering authority) to use alternative methods for calculating "normal value" (fair home-market price) when foreign costs are distorted by government actions, such as subsidies, export limits, or weak enforcement of labor/environmental laws.
• Provides examples of cost distortions (e.g., state-owned input suppliers, financial aid) and permits unquantified adjustments without needing to compare to undistorted scenarios.
• Introduces special rules for valuing major inputs from unaffiliated suppliers in nonmarket economies or those receiving subsidies/dumping benefits.

• Title III: Preventing Circumvention
• Streamlines circumvention inquiries (probes into whether imports evade AD/CVD orders via minor changes, like assembly in third countries).
• Requires initiation within 45 days (extendable to 60) of a request, with preliminary decisions in 150 days (extendable to 210) and finals in another 150 days (extendable to 215).
• Mandates suspension of liquidation (holding imports without final duty assessment) and cash deposits during inquiries, retroactive if warranted.
• Allows producer-, exporter-, importer-, or country-wide remedies, including certifications to exempt compliant goods.
• Clarifies Commerce's broad authority to determine if merchandise falls under AD/CVD proceedings, independent of Customs rulings on classification or origin, considering factors like processing sophistication and value added.
• Requires nonresident importers (those without U.S. assets) to maintain U.S.-based assets or bonds sufficient for potential duties (based on highest possible rates), with penalties for noncompliance; exceptions for trusted trade program participants.

• Title IV: Countering Currency Undervaluation
• Directs Commerce to investigate currency undervaluation (deliberate weakening of a foreign currency to boost exports) as a potential CVD subsidy in relevant cases or reviews.
• Defines the benefit as the difference between actual exchange rates and what fair rates would yield, considering government actions contributing to undervaluation.

• Title V: Preventing Duty Evasion
• Limits protests (challenges) against U.S. Customs and Border Protection (CBP) decisions on evasion claims under AD/CVD orders, aligning them with judicial review processes.
• Extends evasion investigation procedures to safeguard actions (temporary import restrictions to protect U.S. industries from import surges).
• Applies proprietary information protections (confidentiality rules) from AD/CVD proceedings to evasion probes, with adapted timelines and penalties.

• Title VI: General Provisions
• Applies changes to goods from Canada and Mexico under the USMCA trade agreement.
• Sets effective dates: Generally for investigations/reviews initiated after enactment; retroactive for some provisions (e.g., cost distortions from June 2015); special rules for pending cases.

Significant Changes to Existing Law

• Accelerated Timelines: Shortens preliminary determinations in successive and circumvention cases (e.g., 85 days for CVD vs. prior flexible periods) and limits extensions to petitioner requests only.
• Broader Subsidy Scope: Introduces "transnational subsidies" and currency undervaluation as countervailable, expanding beyond direct foreign government aid; allows unquantified cost distortion adjustments without prior quantification requirements.
• Enhanced Anti-Evasion Tools: Mandates certifications, asset requirements for nonresidents, and retroactive liquidation suspensions; clarifies Commerce's independent scope determinations, overriding some Customs decisions.
• Ordinary Course of Trade Expansion: Adds insufficient quantities and cost distortions as exclusions from normal trade comparisons.
• Evasion Protest Limits: Bars routine customs protests for evasion rulings, funneling challenges to specialized courts.
• Retroactivity: Applies cost distortion rules back to 2015 investigations, potentially reopening old cases.

Potential Impacts

• Government Agencies: Increases workload for Commerce (more investigations, alternative calculations), ITC (cumulative injury assessments), and CBP (asset monitoring, certifications, evasion probes), requiring new procedures within 90-180 days. May improve enforcement efficiency but strain resources.
• Citizens and U.S. Industries: Domestic producers gain stronger protection from unfair imports, potentially boosting jobs and competitiveness; consumers may face higher prices due to increased duties.
• International Relations: Could heighten trade tensions with countries like China (targeted for subsidies/currency issues), prompting retaliatory measures or WTO disputes; applies to USMCA partners, signaling stricter North American enforcement. Enhances U.S. leverage in bilateral talks on market distortions.

Main Stakeholders Affected

• U.S. Domestic Producers: Primary beneficiaries, as petitioners can more easily secure duties against successive or circumventing imports.
• Foreign Exporters and Importers: Face stricter scrutiny, faster probes, certification burdens, and asset requirements, especially nonresidents; multinationals may need to adjust supply chains.
• U.S. Importers and Traders: Required to provide certifications and post deposits during inquiries; nonresidents risk penalties (e.g., $50,000 fines or 50% of goods' value).
• Government Agencies: Commerce, ITC, and CBP must implement expanded authorities, with CBP gaining tools for evasion and asset enforcement.
• Consumers and Downstream Industries: Indirectly affected by potential duty increases raising import costs.

Notable Legal, Constitutional, or Political Implications

• Legal: Strengthens administrative discretion for Commerce in scope/origin determinations and cost adjustments, potentially reducing reliance on judicial precedents but inviting challenges in the Court of International Trade. Retroactive provisions (e.g., 2015 cost rules) may raise due process concerns in ongoing litigation if they alter final judgments. Aligns with U.S. international obligations (e.g., WTO consistency noted in text) but could face disputes over subsidy definitions.
• Constitutional: No direct challenges apparent, as it builds on Congress's commerce clause authority over trade; asset requirements for nonresidents may test equal protection if seen as discriminatory, though exceptions mitigate this.
• Political: Reflects bipartisan support (introduced by Sens. Young, Smith, and others across aisles) for "America First" trade policy, targeting perceived unfair practices without new taxes. May politically energize manufacturing sectors but risk alienating export-dependent allies; effective dates ensure quick implementation post-enactment.

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

Sponsor

Sen. Young, Todd [R-IN]

Cosponsors (22)

Sen. Smith, Tina [D-MN], Sen. Tuberville, Tommy [R-AL], Sen. Klobuchar, Amy [D-MN], Sen. Graham, Lindsey [R-SC], Sen. Baldwin, Tammy [D-WI], Sen. Cotton, Tom [R-AR], Sen. Fetterman, John [D-PA], Sen. Wicker, Roger F. [R-MS], Sen. Gallego, Ruben [D-AZ], Sen. Banks, Jim [R-IN], Sen. Warren, Elizabeth [D-MA], Sen. Schmitt, Eric [R-MO], Sen. Gillibrand, Kirsten E. [D-NY], Sen. Moreno, Bernie [R-OH], Sen. Britt, Katie Boyd [R-AL], Sen. Slotkin, Elissa [D-MI], Sen. Capito, Shelley Moore [R-WV], Sen. Hyde-Smith, Cindy [R-MS], Sen. Shaheen, Jeanne [D-NH], Sen. Justice, James C. [R-WV], Sen. McCormick, David [R-PA], Sen. Blackburn, Marsha [R-TN]

Recent Actions

• 2025-02-24: Read twice and referred to the Committee on Finance.
• 2025-02-24: Introduced in Senate

Bill Versions

• Leveling the Playing Field 2.0 Act — issued 2025-02-24 — PDF (63 pages)

Related Bills

• H.R. 1548 (119th Congress)