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S 2383119th CongressIn Committee

CANADA Act

Introduced: Jul 22, 2025
Sponsor: Sen. Welch, Peter [D-VT] (D-Vermont)
Defense & National Security
Standard Summary
Comprehensive overview in 1-2 paragraphs

The CANADA Act would modify how duties from a national emergency are applied to imports. Specifically, it would exempt goods imported by or for the use of small business concerns (as defined by the Small Business Act) from the duties imposed by the national emergency declared on February 1, 2025. The exemption references existing Executive Orders that established and amended the emergency duties. In short, if enacted, small businesses would not have to pay those emergency-related import duties on eligible goods. The bill is narrow in scope and would not alter the underlying authority of the President to declare emergencies or impose duties; it simply removes the duty requirement for a defined class of importers—small businesses—on goods imported for their use.

Key Points

  • 1Short title: The act may be cited as the Creating Access to Necessary American-Canadian Duty Adjustments Act (CANADA Act).
  • 2Exemption from national-emergency duties: The duties imposed by the February 1, 2025 national emergency would not apply to certain imports.
  • 3Eligibility definition: The exemption applies to goods imported by or for the use of small business concerns, as defined in section 3 of the Small Business Act (15 U.S.C. 632).
  • 4References to existing orders: The exemption pertains to duties declared in Executive Order 14193 and amended by Executive Orders 14197 and 14226.
  • 5Legislative status: Introduced in the Senate on July 22, 2025, and referred to the Committee on Finance. The text provided is the full bill as introduced, with no further provisions beyond the exemption.

Impact Areas

Primary group/area affected: Small business concerns that import goods for their own use. They would potentially avoid paying the emergency-related import duties on eligible goods.Secondary group/area affected: Importers and distributors that serve small businesses could experience changes in cost structures and pricing, potentially affecting competitiveness.Additional impacts:- Government revenue: Potentially reduced duty collections associated with the national emergency, depending on how many imports qualify and are used by small businesses.- Trade and cross-border considerations: The title (“CANADA Act”) and the bill’s focus on access to necessary American-Canadian duty adjustments suggest attention to U.S.-Canada supply chains, though the text of the bill itself centers on small-business eligibility rather than Canadian-specific provisions.- Administration and compliance: Businesses would need to determine and demonstrate eligibility as “small business concerns”; details on verification, paperwork, and enforcement would likely be addressed in implementing regulations if the bill advances.
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