S.1165 - Strengthen American Competitiveness Against Harmful Subsidies Act of 2025 (119th Congress)
Summary
S.1165, the "Strengthen American Competitiveness Against Harmful Subsidies Act of 2025," directs the United States Trade Representative (USTR) to monitor industrial subsidies provided by the People's Republic of China. The USTR must also report on the risks these subsidies pose to U.S. employment and manufacturing.
The bill mandates annual reports to Congress with recommendations for legislative or administrative actions to mitigate these risks. It defines key terms like "strategically critical good" and "strategically critical industry" to focus the monitoring and reporting efforts.
The bill aims to protect American economic interests by addressing unfair trade practices.
Expected Effects
The bill will likely lead to increased scrutiny of Chinese industrial subsidies and potentially result in new trade policies or enforcement actions. This could include tariffs, countervailing duties, or other measures designed to level the playing field for American businesses. The reports generated will inform Congress and the Executive Branch about the specific risks and potential responses.
It could also lead to diplomatic pressure on China to reduce or eliminate certain subsidies.
Potential Benefits
- Protection of American Jobs: By identifying and mitigating risks to employment in strategically critical industries.
- Support for Domestic Manufacturing: By addressing unfair competition that undermines U.S. production.
- Enhanced Economic Security: By reducing reliance on foreign sources for strategically critical goods.
- Informed Policy Making: By providing Congress and the Executive Branch with detailed information on Chinese subsidies.
- Increased Transparency: By requiring regular monitoring and reporting on Chinese industrial practices.
Potential Disadvantages
- Potential for Trade Conflicts: Increased scrutiny and potential trade actions could escalate tensions with China.
- Compliance Costs: American businesses may face increased compliance costs related to new trade regulations.
- Retaliatory Measures: China could retaliate with its own trade restrictions, harming American exports.
- Limited Effectiveness: The monitoring and reporting may not be sufficient to fully address the complex issue of Chinese subsidies.
- Bureaucratic Burden: The required monitoring and reporting could create additional bureaucratic burdens for the USTR and other agencies.
Constitutional Alignment
The bill aligns with the Commerce Clause (Article I, Section 8, Clause 3) of the U.S. Constitution, which grants Congress the power to regulate commerce with foreign nations. By addressing unfair trade practices, the bill seeks to promote fair competition and protect American economic interests.
The bill also aligns with the general welfare clause of the constitution, as it aims to promote the economic security and prosperity of the United States.
There are no apparent conflicts with individual liberties or rights protected by the Bill of Rights.
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).