Bill Summary
The proposed legislation mandates that the Congressional Budget Office (CBO) must conduct an economic review to assess the potential economic impacts of any modifications to tariffs before those changes can take effect. Specifically, it requires that any adjustments to tariffs or duties on imported goods cannot be implemented until the CBO has published its findings on a publicly accessible website. This measure aims to ensure transparency and informed decision-making regarding tariff changes by evaluating their anticipated effects on the economy.
Possible Impacts
Here are three examples of how the legislation requiring an economic review of tariff modifications could affect people:
1. **Consumer Prices**: The requirement for an economic review before implementing tariff modifications could lead to changes in consumer prices. If tariffs on imported goods are increased, the reviews may reveal potential price hikes for consumers, as companies could pass on the increased costs to customers. Conversely, if tariffs are decreased, the review might suggest that consumers could benefit from lower prices on imported goods, thus affecting their purchasing power.
2. **Job Market Impacts**: The economic review conducted by the Congressional Budget Office could provide insights into how tariff modifications might impact job creation or loss in specific industries. For example, if a tariff is raised on imported steel, the review may indicate potential job growth in domestic steel manufacturing, while also potentially leading to job losses in industries that rely on cheaper imported steel for production. This information could affect workers' decisions regarding employment and influence labor market dynamics.
3. **Business Planning and Investment**: Businesses that rely on importing goods may adjust their planning and investment strategies based on the findings of the economic reviews. If the review indicates that a tariff modification could significantly increase costs, companies might choose to invest in domestic production facilities instead of relying on imports, or they might delay expansion plans until they have more clarity. This could affect economic growth and innovation within various sectors, as businesses respond to the anticipated economic implications of tariff changes.
[Congressional Bills 119th Congress]
[From the U.S. Government Publishing Office]
[H.R. 4326 Introduced in House (IH)]
<DOC>
119th CONGRESS
1st Session
H. R. 4326
To require the Congressional Budget Office to conduct an economic
review of the economic impact of tariff modifications before
implementation.
_______________________________________________________________________
IN THE HOUSE OF REPRESENTATIVES
July 10, 2025
Mr. Gottheimer (for himself, Mr. Fields, Mr. Carson, and Ms. Titus)
introduced the following bill; which was referred to the Committee on
Ways and Means
_______________________________________________________________________
A BILL
To require the Congressional Budget Office to conduct an economic
review of the economic impact of tariff modifications before
implementation.
Be it enacted by the Senate and House of Representatives of the
United States of America in Congress assembled,
SECTION 1. ECONOMIC REVIEW REQUIRED.
On and after the date of the enactment of this Act, no modification
to any tariff or other duty imposed with respect to the importation of
an article, relative to the rate of such tariff or duty as of the day
before such date of enactment, may enter into effect until the date on
which the Congressional Budget Office publishes on a publicly available
website of the Office an economic review of the expected economic
impact of such modification.
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