United States Reciprocal Trade Act
This bill expands presidential trade authorities.
The bill allows the President, in certain circumstances, to (1) negotiate with a foreign country for tariff reductions on exported U.S. goods, or (2) impose additional duties on imported goods. Specifically, the President may take these actions if it is determined that the country (1) when importing a good from the United States, applies a higher rate of duty on that good than the rate imposed by the United States when the good is imported from that country; or (2) similarly imposes other, nontariff trade restrictions on that good. This authority shall be effective for three years, subject to a three-year renewal.
The President must terminate a rate of duty increase under this bill if the country no longer applies such higher rates or nontariff trade restrictions, or if the higher rate is no longer in the interest of the United States.
The bill also requires the President to consult with and notify Congress regarding the intention of the President to increase a rate of duty on imported goods.
Congress may nullify a rate of duty increase implemented under this bill through a joint resolution of disapproval.
[Congressional Bills 119th Congress]
[From the U.S. Government Publishing Office]
[H.R. 735 Introduced in House (IH)]
<DOC>
119th CONGRESS
1st Session
H. R. 735
To authorize the President to take certain actions relating to
reciprocal trade, and for other purposes.
_______________________________________________________________________
IN THE HOUSE OF REPRESENTATIVES
January 24, 2025
Mr. Moore of West Virginia (for himself, Ms. Greene of Georgia, Mr.
Collins, Mr. McDowell, Mr. Hamadeh of Arizona, Mr. Loudermilk, Mr.
Jack, Mr. Begich, and Mr. Rulli) introduced the following bill; which
was referred to the Committee on Ways and Means, and in addition to the
Committee on Rules, for a period to be subsequently determined by the
Speaker, in each case for consideration of such provisions as fall
within the jurisdiction of the committee concerned
_______________________________________________________________________
A BILL
To authorize the President to take certain actions relating to
reciprocal trade, and for other purposes.
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 ``United States Reciprocal Trade
Act''.
SEC. 2. FINDINGS.
Congress finds the following:
(1) The United States maintains an open market for goods,
with relatively low tariffs, and has long encouraged trading
partners, both bilaterally and in multilateral fora, to
liberalize their markets.
(2) The United States is the world's largest importer of
goods.
(3) Trading partners of the United States in many instances
impose significantly higher tariffs on United States goods than
the United States imposes on the same or similar goods imported
from those same countries.
(4) Europeans have continued to protect their auto markets
from United States automotive companies through high tariffs
while dumping cheap European cars into the United States,
undermining our automotive industry.
(5) Canadian and Mexican authorities have flooded American
markets with cheap goods while simultaneously allowing for
illegal migrants and poisonous fentanyl to pour into the United
States.
(6) United States trading partners in many instances impose
significant nontariff barriers that greatly undermine the value
of negotiated tariff concessions.
(7) The lack of reciprocity in tariff levels and
disproportionate use of nontariff barriers by United States
trading partners facilitates foreign imports, discourages
United States exports, and puts United States producers,
farmers, and workers at a competitive disadvantage.
(8) The lack of reciprocity in tariff levels and nontariff
barriers contributes to the large and growing United States
trade deficit in goods, which is a drag on economic growth and
undermines economic prosperity.
(9) Tariffs under the Trump presidency substantially shrank
the trade deficit with China.
(10) The President must be able to levy tariffs on our
global competitors. Preferential treatment of adversaries, such
as China's Most Favored Nation trading status, undermines
American national security interests domestically and around
the world.
(11) To date a number of United States trading partners
have been unwilling, including in multilateral negotiations, to
reduce tariffs and eliminate nontariff barriers applied to
United States exports.
(12) The United States should seek action by United States
trading partners to lower tariffs and eliminate nontariff
barriers, to promote efficiency in those markets and enhance
opportunities for United States producers, farmers, and
workers.
(13) For the United States to maintain its economic
dominance globally, the President must have the authority to
levy reciprocal tariffs against unfair trading partners.
(14) The President should have a wide array of tools to
open the markets of United States trading partners and
encourage participation in negotiations to liberalize trade in
goods on a fair and reciprocal basis, including the authority
to adjust tariff rates to reciprocal levels.
SEC. 3. AUTHORITY TO TAKE CERTAIN ACTIONS RELATING TO RECIPROCAL TRADE.
(a) In General.--If the President determines that--
(1) the rate of duty imposed by a foreign country with
respect to a particular good, when imported from the United
States, is significantly higher than the rate of duty imposed
by the United States on that good, when imported from that
country, or
(2) the nontariff barriers applied by a foreign country
with respect to a particular good, when imported from the
United States, impose significantly higher burdens, alone or in
combination with any tariffs imposed by that country on that
good, than the burdens of the nontariff barriers applied by the
United States with respect to that good, alone or in
combination with any tariffs imposed by the United States on
that good, when imported from that country,
the President may take one or more of the actions authorized under
subsection (b).
(b) Actions Authorized.--The actions authorized under this
subsection are the following:
(1) To negotiate and seek to enter into an agreement with
the foreign country that commits the country to reduce the rate
of duty or reduce or eliminate nontariff barriers on the good
that is the subject of the determination under subsection (a).
(2) To impose a rate of duty on imports of the good that is
equal to--
(A) the rate of duty imposed by the foreign country
with respect to the good, in the case of a
determination described in subsection (a)(1); or
(B) the effective rate of duty of the nontariff
barriers applied by the foreign country with respect to
the good, alone or in combination with any tariffs
imposed by that country on that good, in the case of a
determination described in subsection (a)(2).
(c) Factors.--In taking an action authorized under subsection (b),
the President shall consider the following factors:
(1) The tariff classification of the good by the United
States and the tariff classification of the good by the foreign
country.
(2) The rate of duty applied by the United States with
respect to the good and the rate of duty applied by the foreign
country with respect to the good.
(3) The physical characteristics of the good.
(4) The end uses and existence of a competitive
relationship between the good--
(A) as exported from the United States to the
foreign country; and
(B) as imported from the country to the United
States.
(5) The level of exports of the good by the country to the
United States and to other countries.
(6) In the case of a determination described in subsection
(a)(1), the extent to which the rate of duty applied by the
foreign country with respect to the good is impeding or
distorting trade.
(7) In the case of a determination described in subsection
(a)(2)--
(A) the extent of the nontariff barriers applied by
the foreign country with respect to the good and the
extent of the nontariff barriers applied by the United
States with respect to the good;
(B) the extent to which the nontariff barriers
applied by the country with respect to the good, alone
or in combination with any tariffs imposed by that
country on that good, are impeding or distorting trade;
(C) the identified purpose of the nontariff
barriers applied by the country with respect to the
good, if any, and the extent to which the nontariff
barriers are more restrictive than necessary to meet
that purpose; and
(D) the degree of transparency of the process by
which the country adopted the nontariff barriers.
(8) Other factors, as the President determines appropriate.
(d) Role of USTR.--The United States Trade Representative, in
consultation with the Secretary of Treasury, the Secretary of Commerce,
and the heads of other relevant Federal agencies, shall advise the
President in determining the effective rate of duty imposed by the
nontariff barriers applied by a foreign country with respect to a good,
alone or in combination with any tariffs imposed by that country on
that good, in the case of a determination described in subsection
(a)(2).
(e) Lower Rate of Duty.--The President may impose a rate of duty on
imports of a good from a foreign country that is lower than the rate of
duty described in subsection (b)(2)(A) or lower than the effective rate
of duty described in subsection (b)(2)(B), as the case may be, if the
President determines that application of such lower rate of duty is
necessary and appropriate.
(f) Higher Rate of Duty.--If the President imposes a rate of duty
on imports of a good from a foreign country under subsection (b)(2),
and the country further increases its rate of duty on imports of the
good from the United States, the President may further increase the
rate of duty on imports of the good from the country to a rate that is
equal to the rate of duty applied by that country.
(g) Termination.--The President shall terminate the imposition of
any increase in the rate of duty on imports of a good from a foreign
country under subsection (b)(2) effective on the date on which the
President determines that--
(1) the foreign country is no longer--
(A) imposing a rate of duty with respect to the
good, as described in subsection (a)(1); or
(B) applying nontariff barriers with respect to the
good, as described in subsection (a)(2); or
(2) continued imposition of the increased rate of duty on
imports of the good from the foreign country is not in the
economic or public interest of the United States.
SEC. 4. NOTICE AND CONSULTATION.
(a) In General.--Before taking any action authorized under section
3(b)(1), the President shall provide notice to and consult with the
Committee on Ways and Means of the House of Representatives and the
Committee on Finance of the Senate regarding the proposed action.
(b) Notice.--Before taking any action authorized under section
3(b)(2), the President shall--
(1) not less than 30 days before the date on which
imposition of an increased rate of duty on imports of a good
from a foreign country is to take effect, publish notice in the
Federal Register of, and allow for public comment on, the
proposed imposition and level of such increased rate of duty;
and
(2) seek advice regarding the proposed action from the
advisory committees established under section 135 of the Trade
Act of 1974 (19 U.S.C. 2155).
(c) Additional Notice.--The President shall promptly publish in the
Federal Register notice of any action taken pursuant to section 3(f) or
3(g).
SEC. 5. CONGRESSIONAL DISAPPROVAL OF PRESIDENTIAL IMPOSITION OF RATES
OF DUTY ON IMPORTS OF GOODS FROM FOREIGN COUNTRIES UNDER
SECTION 3(B)(2); DISAPPROVAL RESOLUTION.
(a) In General.--An action taken by the President under section
3(b)(2) to impose a rate of duty on imports of a good from a foreign
country shall cease to have force and effect upon the enactment of a
disapproval resolution, provided for in subsection (b), relating to
that action.
(b) Congressional Rulemaking Power; Disapproval Resolution.--
(1) In general.--This section is enacted by the Congress--
(A) as an exercise of the rulemaking power of the
House of Representatives and the Senate, respectively,
and as such is deemed a part of the rules of each
House, respectively, but applicable only with respect
to the procedures to be followed in that House in the
case of disapproval resolutions and such procedures
supersede other rules only to the extent that they are
inconsistent therewith; and
(B) with the full recognition of the constitutional
right of either House to change the rules (so far as
relating to the procedure of that House) at any time,
in the same manner, and to the same extent as any other
rule of that House.
(2) Disapproval resolution.--For purposes of this section,
the term ``disapproval resolution'' means only a joint
resolution of either House of Congress the matter after the
resolving clause of which is as follows: ``That the Congress
disapproves the action taken under section 3(b)(2) of the
United States Reciprocal Trade Act with respect to the
imposition of a rate of duty on imports of __ from __ under
such section 3(b)(2).'', the first blank space being filled
with a description of the good with respect to which the duty
is imposed under section 3(b)(2) and the second blank being
filled with the name of the foreign country from which the good
is imported into the United States.
(3) Consideration.--
(A) Introduction.--All disapproval resolutions
introduced in the House of Representatives shall be
referred to the Committee on Ways and Means and all
disapproval resolutions introduced in the Senate shall
be referred to the Committee on Finance.
(B) Amendments prohibited; motions to suspend
application of this subparagraph prohibited.--No
amendment to a disapproval resolution shall be in order
in either the House of Representatives or the Senate,
and no motion to suspend the application of this
subparagraph shall be in order in either House nor
shall it be in order in either House for the Presiding
Officer to entertain a request to suspend the
application of this subparagraph by unanimous consent.
(C) Majority required for adoption.--A disapproval
resolution considered under this subsection shall
require an affirmative vote of two-thirds of the
Members, duly chosen and sworn, for adoption.
SEC. 6. REPORT.
Before entering into an agreement with a foreign country under
section 3(b)(1), the United States Trade Representative shall submit to
the appropriate congressional committees and leadership a report that
describes--
(1) the implementation of the agreement, including how it
is consistent with and does not materially differ from or
otherwise affect Federal or State laws or regulations;
(2) the impact on the competitiveness of United States
businesses; and
(3) the impact on United States consumers.
SEC. 7. SUNSET OF PRESIDENTIAL IMPOSITION OF RATES OF DUTY ON IMPORTS
OF GOODS FROM FOREIGN COUNTRIES UNDER SECTION 3(B)(2) BY
DISAPPROVAL RESOLUTION.
(a) In General.--The authority of the President to take an action
under section 3(b)(2) to impose a rate of duty on imports of a good
from a foreign country--
(1) shall be effective for the period ending on the date
that is three years after the date of the enactment of this
Act; and
(2) shall be extended for an additional period of three
years if (and only if)--
(A) the President requests such extension under
subsection (b); and
(B) a disapproval resolution is not enacted into
law as provided for under subsection (c).
(b) Report to Congress.--If the President is of the opinion that
the authority of the President to take an action under section 3(b)(2)
to impose a rate of duty on imports of a good from a foreign country
should be extended for the additional period described in subsection
(a)(2), the President shall submit to Congress, not later than the date
that is three months before the end of the period described in
subsection (a)(1), a written report that contains a request for such
extension, together with a description of all actions taken under
section 3(b)(2) to date.
(c) Disapproval Resolution.--
(1) Congressional rulemaking power.--This section is
enacted by the Congress--
(A) as an exercise of the rulemaking power of the
House of Representatives and the Senate, respectively,
and as such is deemed a part of the rules of each
House, respectively, but applicable only with respect
to the procedures to be followed in that House in the
case of disapproval resolutions and such procedures
supersede other rules only to the extent that they are
inconsistent therewith; and
(B) with the full recognition of the constitutional
right of either House to change the rules (so far as
relating to the procedure of that House) at any time,
in the same manner, and to the same extent as any other
rule of that House.
(2) Disapproval resolution.--For purposes of subsection
(a), the term ``disapproval resolution'' means only a joint
resolution of either House of Congress the matter after the
resolving clause of which is as follows: ``That the Congress
disapproves the request of the President for the extension,
under section 7(a)(2)(A) of the United States Reciprocal Trade
Act, of the authority of the President to take an action under
section 3(b)(2) of such Act to impose a rate of duty on imports
of a good from a foreign country after the period ending on the
date that is three years after the date of the enactment of
such Act.''.
(3) Introduction; referral.--A disapproval resolution--
(A) may be introduced in either House of Congress
by any member of such House; and
(B) shall be referred, in the House of
Representatives, to the Committee on Ways and Means
and, in addition, to the Committee on Rules.
(4) Floor consideration.--The provisions of subsections (d)
and (e) of section 152 of the Trade Act of 1974 (19 U.S.C.
2192) (relating to the floor consideration of certain
resolutions in the House and Senate) apply to a disapproval
resolution.
(5) Limitations on consideration.--It is not in order for--
(A) the House of Representatives to consider any
disapproval resolution not reported by the Committee on
Ways and Means and, in addition, by the Committee on
Rules;
(B) the Senate to consider any disapproval
resolution not reported by the Committee on Finance; or
(C) either House of Congress to consider a
disapproval resolution after the date that is three
years after the date of the enactment of this Act.
(d) Rules of Construction.--
(1) In general.--An action authorized under section 3(b)(2)
to impose a rate of duty on imports of a good from a foreign
country that is taken before the end of the period described in
subsection (a)(1) or the end of the period described in
subsection (a)(2) shall remain in effect after the end of such
respective period.
(2) Additional authorities.--The President may exercise the
authorities of subsections (e), (f), and (g) of section 3 with
respect to an action described in paragraph (1) after the end
of the period described in such paragraph that is applicable to
such action.
SEC. 8. DEFINITIONS.
In this Act:
(1) Appropriate congressional committees and leadership.--
The term ``appropriate congressional committees and
leadership'' means--
(A) the Committee on Ways and Means of the House of
Representatives and the Committee on Finance of the
Senate; and
(B) the Speaker of the House of Representatives,
the minority leader of the House of Representatives,
the majority leader of the Senate, and the minority
leader of the Senate.
(2) Nontariff barrier.--The term ``nontariff barrier''
includes any government-imposed measure or policy, other than a
customs duty, that restricts, prevents, or impedes
international trade in goods, including import policies,
sanitary and phytosanitary measures, technical barriers to
trade, government procurement, export subsidies, lack of
intellectual property protection, digital trade barriers, and
government-tolerated anticompetitive conduct of state-owned or
private firms.
(3) Rate of duty.--The term ``rate of duty'' means the rate
of customs duty applied on imports of a good, but does not
include an antidumping or countervailing duty or a duty applied
under a preferential tariff arrangement.
<all>
Introduced in House
Introduced in House
Referred to the Committee on Ways and Means, and in addition to the Committee on Rules, for a period to be subsequently determined by the Speaker, in each case for consideration of such provisions as fall within the jurisdiction of the committee concerned.
Referred to the Committee on Ways and Means, and in addition to the Committee on Rules, for a period to be subsequently determined by the Speaker, in each case for consideration of such provisions as fall within the jurisdiction of the committee concerned.
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