United States Reciprocal Trade Act

Summary

Authorizes the President to respond to foreign countries that apply higher tariffs or trade barriers to specific U.S. goods by negotiating reductions or by imposing a U.S. duty on those imported goods equal to the foreign country’s tariff or the effective rate caused by its nontariff barriers. The bill requires advance notice, public comment, agency consultations, pre-entry reporting for negotiated agreements, and creates a congressional disapproval joint-resolution path; the authority is time-limited to three years and can be extended once with conditions.

• Gives the President authority to impose a U.S. duty on a specific imported good equal to a foreign country’s tariff or the tariff-equivalent of its nontariff barriers when the foreign measure is significantly higher than the U.S. rate.
• Allows negotiation as an alternative to tariffs; USTR must report to Congress before entering agreements describing implementation and impacts.
• Requires at least 30 days’ Federal Register notice and public comment before increased duties take effect and consultation with statutory advisory committees.
• Creates a congressional disapproval joint-resolution process to nullify Presidential imposed duties; disapproval requires a two-thirds affirmative vote.
• Limits the President’s authority to three years from enactment, with a single possible three-year extension only if certain conditions are met.
• Defines "nontariff barrier" broadly and excludes antidumping and countervailing duties from the matching "rate of duty" authority.
• Requires interagency advice (USTR with Treasury and Commerce) and consideration of specific technical factors when determining effective rates.
• Permits the President to set lower retaliatory rates when appropriate and to increase previously imposed rates up to parity if the foreign country raises its rate.