Sponsor
Jared Golden
Representative · D-ME
Representative · D-ME
The bill creates an automatic, President-driven tariff mechanism intended to improve the U.S. trade balance and raise revenue, but it risks higher consumer prices, inflation and supply-chain disruption, foreign retaliation, regressive impacts on low-income households, and reduced congressional oversight.
Middle-class families and small domestic producers could gain from a stronger U.S. trade balance if higher duties encourage more domestic production and reduce imports.
Taxpayers and policymakers get a predictable, automatic tool tied to prior-year trade outcomes to adjust duties annually, which could simplify planning and signal U.S. trade policy intentions.
Taxpayers could see increased federal revenue from additional duty collections, which could be used to fund programs or reduce deficits.
Small businesses, manufacturers, and middle-class consumers will face higher costs because a 10% (and possibly larger) tariff raises prices on imports and goods that use imported inputs.
If the U.S. runs persistent trade deficits, automatic annual increases could produce escalating tariffs that amplify inflationary pressure and disrupt supply chains.
Exporters and export-sector workers risk harm from retaliatory tariffs by trading partners, potentially reducing exports and costing jobs.
Based on analysis of 2 sections of legislative text.
Adds a new 10% ad valorem duty on all imported goods, then adjusts it ±5 percentage points annually based on prior-year trade balance.
Official title: To impose additional duties on imports of goods into the United States.
Introduced January 16, 2025 by Jared Golden · Last progress January 16, 2025
Imposes an additional annual ad valorem duty of 10% on the value of all imported goods, applied on top of existing customs duties. Each subsequent year the President must raise that additional duty by 5 percentage points if the United States ran a goods-and-services trade deficit in the prior calendar year, or lower it by 5 percentage points if the U.S. recorded a trade balance or surplus (but never below zero).