Secure Trade Act

The Secure Trade Act would dramatically reshape U.S. import duties and trade policy. It creates a new baseline duty of 10% ad valorem on all imported goods each calendar year, in addition to any existing duties, with a President–ial ability to reduce that rate in specific sectors for national or security reasons (subject to congressional consultation). The bill also imposes special, staged increases and protections related to trade with the People’s Republic of China (PRC), including potentially higher or 100% duties on many PRC-origin goods, inflation-adjusted adjustments to duty rates, tariff-rate quotas for PRC-only imports, and a phased-in approach intended to reach full rates over several years. In addition, the bill alters how PRC goods are valued at import (requiring the U.S. value for China-origin merchandise), expands U.S. screening powers over foreign investments (expanding CFIUS oversight to include certain greenfield and brownfield investments by foreign countries of concern), and broadens enforcement tools (quotas, import prohibitions, and HTS modifications). It also designates a set of “articles” subject to these measures (based on critical supply chains, 301/232 investigations, or dual-use status). In short, the bill would raise prices on many imports, tighten China-related trade flows, and broaden national-security screening of foreign investment, with the aim of reducing dependence on China and protecting critical supply chains—but at the potential cost of higher consumer prices, disrupted supply chains, and increased regulatory burden on importers and investors.