Bill Summary
The "Fair Trade Act of 2026" is a proposed legislation aimed at imposing additional import duties on goods brought into the United States. It establishes a tiered duty system based on the trade balance with the exporting country:
1. **Duty Rates**:
- A 10% ad valorem duty on goods imported from countries where the U.S. has a trade surplus.
- A 15% ad valorem duty on goods imported from countries with which the U.S. has a trade deficit.
2. **Additional Duties**: These new duties are to be added on top of any existing tariffs already imposed on the goods.
3. **Presidential Authority**: The President has the authority to reduce these additional duties if deemed necessary for national interest or security, but must first consult with relevant congressional committees.
Overall, the legislation aims to address trade imbalances and promote fair trade practices by adjusting import costs based on the economic relationship between the U.S. and trading partners.
Possible Impacts
The "Fair Trade Act of 2026," as outlined in the provided text, could affect people in various ways. Here are three examples:
1. **Increased Prices for Consumers**:
The imposition of additional duties on imported goods, particularly those from countries with which the United States has a trade deficit (15% ad valorem), may lead to higher prices for consumers. Retailers often pass on the cost of tariffs to customers, which could result in increased costs for everyday items, such as clothing, electronics, and household goods. This could disproportionately affect low- and middle-income families, who may struggle to absorb the higher prices.
2. **Impact on Businesses and Employment**:
Domestic businesses that rely on imported goods for their supply chains may face increased costs due to the additional duties, potentially leading to reduced profit margins. In response, companies might cut back on hiring, reduce employee hours, or even lay off workers to maintain profitability. Conversely, some domestic industries may benefit from reduced competition from imports, potentially leading to job growth in those sectors, but the overall employment impact could be negative in industries heavily reliant on imports.
3. **Trade Relations and Economic Uncertainty**:
The implementation of additional duties could strain trade relations between the United States and its trading partners, particularly those with which the U.S. has trade deficits. This could lead to retaliatory measures, where affected countries impose their own tariffs on U.S. goods, further complicating international trade dynamics. Such actions could increase economic uncertainty, affecting businesses' investment decisions and potentially leading to market volatility that impacts savings and investments for individuals.
[Congressional Bills 119th Congress]
[From the U.S. Government Publishing Office]
[H.R. 6991 Introduced in House (IH)]
<DOC>
119th CONGRESS
2d Session
H. R. 6991
To impose additional duties on goods imported into the United States.
_______________________________________________________________________
IN THE HOUSE OF REPRESENTATIVES
January 8, 2026
Ms. Van Duyne introduced the following bill; which was referred to the
Committee on Ways and Means
_______________________________________________________________________
A BILL
To impose additional duties on goods imported into the United States.
Be it enacted by the Senate and House of Representatives of the
United States of America in Congress assembled,
SECTION 1. SHORT TITLE.
This Act may be cited as the ``Fair Trade Act of 2026''.
SEC. 2. IMPOSITION OF ADDITIONAL DUTIES ON GOODS IMPORTED INTO UNITED
STATES.
(a) In General.--With respect to goods imported into the United
States, for each calendar year beginning on or after the date of the
enactment of this Act, there shall be imposed the following duties:
(1) 10 percent ad valorem of each good imported from a
country with which the United States has a trade surplus.
(2) 15 percent ad valorem of each good imported from a
country with which the United States has a trade deficit.
(b) Relation to Existing Duties.--Each duty required under
subsection (a) shall be in addition to any other duty imposed by law
with respect to the good.
(c) Reduction of Additional Duties.--
(1) In general.--Subject to paragraph (2), the President
may reduce the percentage requirement in subsection (a) to an
amount greater than zero percent with respect to any good if
the President determines that such reduction is in the national
interest or national security interest of the United States.
(2) Congressional consultation.--Prior to exercising
authority under paragraph (1), the President shall consult with
the Committee on Ways and Means of the House of Representatives
and the Committee on Finance of the Senate prior to determine
whether such exercise of authority is appropriate.
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