Fair Trade Act of 2026
Summary
The Fair Trade Act of 2026 proposes imposing additional duties on goods imported into the United States. These duties would be 10% ad valorem on goods from countries with which the US has a trade surplus and 15% on goods from countries with which the US has a trade deficit. The President has the authority to reduce these duties if it is in the national interest or national security interest, after consulting with relevant congressional committees.
Expected Effects
This act could lead to increased costs for imported goods, potentially impacting consumers and businesses. It may also alter trade relationships with other countries, leading to retaliatory tariffs or trade disputes. The act aims to address trade imbalances, but its effectiveness will depend on various economic factors and international responses.
Potential Benefits
- Could incentivize domestic production by making imported goods more expensive.
- May reduce trade deficits with certain countries.
- Could generate additional revenue for the US government through the collection of duties.
- Potentially strengthens the US's negotiating position in trade agreements.
- May encourage other countries to adopt fairer trade practices.
Potential Disadvantages
- Could increase prices for consumers due to higher import costs.
- May harm businesses that rely on imported goods or materials.
- Could lead to retaliatory tariffs from other countries, harming US exports.
- May disrupt global supply chains.
- Could negatively impact international relations and cooperation.
Most Disadvantaged Areas:
Constitutional Alignment
The bill aligns with Congress's power to regulate commerce with foreign nations, as granted by Article I, Section 8 of the Constitution. The delegation of authority to the President to reduce duties is also a common practice, but must be balanced with congressional oversight to prevent overreach. The requirement for presidential consultation with congressional committees helps ensure this balance.
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).