Secure Trade Act

This bill would add a new 10 percent duty on every good imported into the United States, on top of any other tariffs. The President could lower that 10 percent for certain sectors if it serves the national or security interest, but cannot reduce it to zero.

It also creates tougher rules for trade with China. Special tariff rates would apply to Chinese goods: if a base rate is below 35 percent, it becomes 35 percent; and for certain “specified” strategic items, if the rate is below 100 percent, it becomes 100 percent. These increases are phased in over five years (10 percent of the increase after 180 days; 25 percent after 2 years; 50 percent after 4 years; 100 percent after 5 years). For products that the U.S. only imports from China, the government would set a yearly import limit equal to what Americans use but don’t make at home; purchases above that limit face a 100 percent duty. In‑quota entries keep their old rate for the first three years, then move onto a slower, separate phase‑in. The bill also lets the President go further for China—raising duties more, setting quotas to cut reliance, or blocking imports tied to national security risks, unfair trade, or human rights abuses. It changes how Chinese goods are valued at the border: they must be valued using U.S. market prices, with importers reporting the value and Customs verifying it. Finally, it expands national‑security reviews of certain new or existing U.S. investments tied to foreign countries of concern and requires filings for those deals.

Key points

• Who is affected:
  • Importers of any goods entering the U.S.
  • Businesses importing from China, especially items on critical supply chain lists, items under Section 301 or 232 investigations, or certain dual‑use technologies.
  • Companies involved in U.S. investments linked to foreign countries of concern.
• What changes:
  • A new 10 percent duty on all imports; the President may reduce it by sector (but not to zero).
  • Higher tariffs for Chinese goods (at least 35 percent for goods with lower base rates; at least 100 percent for specified strategic items), plus authority to set quotas or ban certain imports.
  • Chinese goods must be valued using U.S. market prices; importers must report values and Customs will verify.
• When:
  • The 10 percent duty begins upon enactment.
  • China‑specific tariff increases phase in over five years (10% after 180 days; 25% after 2 years; 50% after 4; 100% after 5).
  • For items only imported from China, in‑quota entries keep old rates for 3 years; above‑quota entries face 100% immediately; then a slower phase‑in applies from years 3 to 7.
  • Certain China duty rates are adjusted for inflation each year, starting January 1, 2025.