H.R.735 - United States Reciprocal Trade Act (119th Congress)
Summary
H.R.735, the United States Reciprocal Trade Act, grants the President authority to take actions regarding reciprocal trade. It allows the President to impose duties on goods from foreign countries if their duties or non-tariff barriers on U.S. goods are significantly higher. The bill emphasizes reciprocity in trade relations and aims to address trade imbalances.
The bill requires the President to consult with Congress and provide notice before taking action. It also allows Congress to disapprove of the President's actions through a disapproval resolution. The authority granted to the President under this bill would sunset after three years, with a possible three-year extension if Congress does not disapprove.
Expected Effects
The bill could lead to increased tariffs on goods from countries perceived as having unfair trade practices. This could result in trade negotiations aimed at reducing tariffs and non-tariff barriers. The changes could also lead to retaliatory tariffs from other countries, potentially increasing costs for American consumers and businesses.
Potential Benefits
- Could lead to fairer trade practices and reduced trade deficits.
- May incentivize foreign countries to lower tariffs and non-tariff barriers on U.S. goods.
- Could boost U.S. exports by making them more competitive in foreign markets.
- May protect U.S. industries from unfair competition.
- Provides the President with a tool to address trade imbalances.
Potential Disadvantages
- Could lead to retaliatory tariffs from other countries, harming U.S. exports.
- May increase costs for American consumers due to higher import prices.
- Could disrupt global supply chains.
- May strain relationships with key trading partners.
- The broad authority granted to the President could be misused.
Constitutional Alignment
The bill grants significant authority to the President in trade matters, which could be seen as an expansion of executive power. Article I, Section 8 of the Constitution grants Congress the power to regulate commerce with foreign nations. The bill includes provisions for congressional oversight and disapproval, attempting to balance executive authority with congressional oversight.
The sunset clause and the provision for congressional disapproval resolutions are designed to ensure that Congress retains its constitutional role in regulating trade. The balance between presidential authority and congressional oversight will be a key factor in determining the bill's long-term constitutional implications.
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).