S.206 - Restoring Trade Fairness Act (119th Congress)
Summary
The Restoring Trade Fairness Act aims to suspend normal trade relations with the People's Republic of China (PRC) and increase tariffs on goods imported from China. It seeks to address trade imbalances and concerns over intellectual property theft and non-compliance with trade agreements. The bill also establishes a trust fund to compensate US producers affected by retaliatory actions from China.
Expected Effects
If enacted, the Act would significantly increase the cost of goods imported from China, potentially leading to higher prices for consumers. It could also incentivize domestic production and diversification of supply chains away from China. The Act could also lead to retaliatory tariffs from China, impacting US exporters.
Potential Benefits
- Increased domestic production: Higher tariffs could make US-made goods more competitive.
- Supply chain diversification: Businesses may seek alternative sources for goods, reducing reliance on China.
- Protection of intellectual property: The Act aims to deter intellectual property theft by increasing economic pressure on China.
- Compensation for affected producers: The trust fund would provide financial relief to US producers harmed by Chinese retaliation.
- Enhanced national security: Reducing dependence on Chinese imports could strengthen US national security.
Most Benefited Areas:
Potential Disadvantages
- Higher consumer prices: Increased tariffs would likely be passed on to consumers in the form of higher prices.
- Retaliatory tariffs: China could impose retaliatory tariffs on US exports, harming American businesses and farmers.
- Disrupted supply chains: Businesses may face challenges in finding alternative suppliers, leading to disruptions in supply chains.
- Reduced trade: Overall trade between the US and China could decrease, potentially impacting economic growth.
- Increased costs for businesses: Businesses that rely on Chinese imports may face higher costs, reducing their competitiveness.
Most Disadvantaged Areas:
Constitutional Alignment
While the Constitution grants Congress the power to regulate commerce with foreign nations (Article I, Section 8, Clause 3), the Act's potential impact on consumer prices and trade relationships raises concerns about promoting the general welfare. The Act's focus on national security aligns with the Constitution's emphasis on providing for the common defense. However, the broad delegation of authority to the President to modify tariffs and impose quotas could be viewed as raising concerns regarding the separation of powers.
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).