H.R.505 - To impose additional duties on imports of goods into the United States. (119th Congress)
Summary
H.R. 505 proposes imposing additional duties on goods imported into the United States. The bill mandates a 10% ad valorem duty on all imported goods, starting from the year of enactment. This duty can be adjusted annually based on the preceding year's trade balance, increasing by 5% if there's a trade deficit or decreasing by 5% if there's a trade surplus or balance, but not below $0.
Expected Effects
The bill, if enacted, would likely increase the cost of imported goods for consumers and businesses. It could also lead to retaliatory tariffs from other countries, potentially harming U.S. exports. The intended effect is to reduce trade deficits and encourage domestic production.
Potential Benefits
- Potentially reduces trade deficits.
- May incentivize domestic production.
- Could increase government revenue through tariffs.
- May create some jobs in specific sectors.
- Could strengthen certain industries.
Potential Disadvantages
- Increases costs for consumers due to higher prices on imported goods.
- Could harm businesses that rely on imported materials or goods.
- May lead to retaliatory tariffs from other countries, harming U.S. exports.
- Potentially disrupts global supply chains.
- Could negatively impact international relations.
Most Disadvantaged Areas:
Constitutional Alignment
The bill aligns with Congress's power to regulate commerce with foreign nations, as granted by Article I, Section 8, Clause 3 of the Constitution. However, the delegation of authority to the President to adjust tariffs based on trade balances could raise questions regarding the non-delegation doctrine, which prevents Congress from delegating its legislative powers to the executive branch without providing clear standards.
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).