To impose additional duties on imports of goods into the United States.
This bill would establish a new tariff regime on all imports to the United States. It starts with a baseline duty of 10% ad valorem (a percentage of the import's value) on every imported good. In each subsequent calendar year, the duty could be increased or decreased by an additional 5 percentage points based on the United States’ overall balance of trade in goods and services for the immediately preceding year: if the U.S. ran a trade deficit, the duty would rise; if the U.S. had a balance or surplus, the duty would fall (but not below 0%). The stated intent appears to be to adjust the cost of imports in response to the nation’s trade position. The new duty is in addition to any existing duties and would be applied by the President. Key features to note are that the measure applies to all imported goods, the adjustment is automatic and year-by-year (based on the prior year’s trade balance), and the rate cannot drop below zero. The bill does not specify exemptions or carve-outs from the tariff.
Key Points
- 1Baseline duty: A 10% ad valorem tariff on imports of any good, effective in the first calendar year after enactment.
- 2Yearly adjustments: For each subsequent calendar year, the duty on each good may be increased by 5 percentage points if the U.S. has a trade deficit in goods and services in the immediately preceding year, or decreased by 5 percentage points if there is a balance or surplus (with a floor at 0%).
- 3Additional to existing duties: The imposed duty is in addition to any other duties or tariffs already in law.
- 4Automatic application: The President is tasked with imposing and adjusting these duties; the changes are not contingent on new separate legislation each year.
- 5Scope: Applies to imports of any good into the United States with no explicit exclusions listed in the text.
- 6Ad valorem: A tariff calculated as a percentage of the value of the imported good.
- 7Deficit/surplus (in goods and services): The overall balance of trade; a deficit means the U.S. imported more than it exported, while a surplus means exports exceeded imports.