HR 2459119th CongressIn Committee

Reclaim Trade Powers Act

Introduced: Mar 27, 2025

Standard Summary

Comprehensive overview in 1-2 paragraphs

The Reclaim Trade Powers Act is a bill introduced in the 119th Congress that would repeal the authority in the Trade Act of 1974 that allows the federal government to impose certain import surcharges to address balance of payments deficits. In plain terms, if enacted, the United States would lose a tool that could be used to raise import costs temporarily in order to reduce a shortfall in the country’s international payments (the gap between money coming in from abroad and money going out). The text provided indicates the bill would do nothing else beyond repealing that authority, with no new powers granted or additional provisions specified.

Key Points

1Short title: The bill is titled the “Reclaim Trade Powers Act.”
2Repeal of balance-of-payments authority: The bill repeals Section 122 of the Trade Act of 1974 (19 U.S.C. 2132), which currently authorizes certain import surcharges to address balance of payments deficits.
3Scope of change: The bill appears to be a straight repeal; no new authorities or alternative tools are created in the text provided.
4Effective date: The text snippet does not specify an effective date or transition rules; typical enactment would be upon enactment or as detailed in the final language, which is not shown here.
5Legislative status: Introduced in the House on March 27, 2025, sponsor list includes Mr. Panetta and several co-sponsors; referred to the Committee on Ways and Means.

Impact Areas

Primary group/area affected- Domestic manufacturers, importers, and industries relying on imported inputs: Removing the balance-of-payments surcharges could affect cost structures, pricing, and competitiveness if surcharges were previously used as a policy lever.- U.S. consumers: Potential indirect effects on prices and availability of imported goods if surcharges would have altered supply or pricing dynamics.Secondary group/area affected- U.S. trading partners and international relations: Elimination of surcharges as a policy tool could influence trade negotiations, leverage in tariff discussions, and responses from other countries.- Federal budget and revenue: If surcharges previously generated revenue, repealing them would remove that potential source (though surcharges are typically focused on macroeconomic policy rather than revenue-raising).Additional impacts- Macroeconomic policy options: The bill would constrain the federal toolbox for addressing balance of payments deficits through trade measures, potentially increasing reliance on other tools (fiscal policy, monetary policy, currency actions, or multilateral commitments).- Compliance and legal framework: By removing the statutory authority, the U.S. would align with a more restrictive stance on using import charges for macroeconomic balancing, which could affect how trade policy is coordinated with international rules and domestic economic goals.

Generated by gpt-5-nano on Nov 19, 2025