H.R.2459 - Reclaim Trade Powers Act (119th Congress)
Summary
H.R.2459, the Reclaim Trade Powers Act, seeks to amend the Trade Act of 1974 by eliminating the authority to impose import surcharges to address balance of payments deficits. The bill aims to repeal Section 122 of the Trade Act of 1974, which grants the President the power to impose such surcharges. The bill was introduced in the House of Representatives on March 27, 2025, and referred to the Committee on Ways and Means.
Expected Effects
If enacted, the Reclaim Trade Powers Act would remove a tool available to the executive branch for managing trade imbalances. This could lead to a shift in how the United States addresses trade deficits, potentially requiring alternative strategies. The removal of this authority could impact international trade negotiations and the US's ability to respond to economic pressures.
Potential Benefits
- Potentially reduces the risk of unilateral trade actions that could escalate into trade wars.
- May encourage more collaborative approaches to addressing trade imbalances through international agreements.
- Could lead to greater predictability in trade policy, benefiting businesses engaged in international trade.
- May limit executive power, aligning more closely with congressional authority over trade as outlined in the Constitution.
- Could foster innovation by preventing reliance on import surcharges as a quick fix for economic issues.
Potential Disadvantages
- Removes a tool that the US government could use to address significant balance of payments deficits.
- May weaken the US's negotiating position in international trade talks.
- Could limit the government's ability to respond quickly to unfair trade practices by other countries.
- Potentially increases reliance on other, possibly less effective, methods for managing trade imbalances.
- May lead to job losses in industries that benefit from import surcharges.
Constitutional Alignment
The bill's focus on amending trade legislation aligns with Congress's constitutional authority to regulate commerce with foreign nations (Article I, Section 8, Clause 3). By repealing a section of the Trade Act of 1974, Congress is exercising its legislative power to alter existing trade regulations. The act doesn't appear to infringe on any individual rights or freedoms guaranteed by the Constitution or its amendments.
Impact Assessment: Things You Care About ⓘ
This action has been evaluated across 19 key areas that matter to you. Scores range from 1 (highly disadvantageous) to 5 (highly beneficial).