H.R.694 - Restoring Trade Fairness Act (119th Congress)
Summary
H.R. 694, the Restoring Trade Fairness Act, proposes to suspend normal trade relations with the People's Republic of China and increase duties on goods imported from China. The bill cites concerns over China's trade practices, intellectual property theft, and non-compliance with trade agreements. It aims to address trade deficits and promote resilient supply chains.
Expected Effects
If enacted, this bill would significantly increase the cost of goods imported from China. This could lead to higher prices for consumers, shifts in supply chains, and potential retaliatory actions from China. The bill also establishes a trust fund to compensate producers affected by retaliatory measures and allocates remaining funds to the Department of Defense.
Potential Benefits
- Increased domestic production: Higher tariffs could incentivize companies to shift production back to the United States.
- Reduced reliance on China: The bill aims to decrease dependence on Chinese imports, strengthening national security.
- Protection of intellectual property: Penalizing unfair trade practices could deter intellectual property theft.
- Support for affected industries: The trust fund provides compensation for industries harmed by Chinese retaliation.
- Strengthened national defense: Remaining funds allocated to the Department of Defense could enhance military capabilities.
Most Benefited Areas:
Potential Disadvantages
- Higher consumer prices: Increased tariffs would likely raise the cost of goods for American consumers.
- Retaliatory measures: China could retaliate with its own tariffs, harming American exporters.
- Supply chain disruptions: Shifting supply chains could lead to temporary disruptions and increased costs.
- Reduced competitiveness: American businesses relying on inexpensive Chinese imports could become less competitive.
- Increased trade tensions: The bill could escalate trade tensions between the United States and China.
Most Disadvantaged Areas:
Constitutional Alignment
The bill's focus on trade regulation falls under the purview of Congress, as granted by Article I, Section 8, Clause 3 of the Constitution, which empowers Congress to regulate commerce with foreign nations. The bill's provisions for tariffs and trade agreements are consistent with this constitutional authority. However, the potential impact on consumer prices and international relations warrants careful consideration to ensure alignment with the overall welfare of the nation.
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).