The Trade Review Act of 2025 is a proposed law that aims to give Congress more control over tariffs, which are taxes on imported goods. It requires the President to get Congress's approval to keep most new tariffs in place for more than 60 days. This change seeks to balance power between the President and Congress when it comes to trade decisions.
What This Bill Does
The Trade Review Act of 2025 introduces new rules about how tariffs are imposed in the United States. A tariff is a tax on goods coming into the country, and this bill wants to make sure that Congress has a say in these decisions. Currently, the President can impose tariffs without needing Congress's approval, but this bill changes that.
Under the new rules, if the President decides to impose or increase a tariff, they must notify Congress within 48 hours. This notification must include the reasons for the tariff and an assessment of how it might affect American businesses and consumers. After this notification, the tariff will automatically expire after 60 days unless Congress passes a resolution to approve it.
This bill also allows Congress to cancel a tariff at any time by passing a resolution of disapproval. This means that Congress can act quickly to stop a tariff if they believe it's not in the country's best interest. However, the bill does not apply to certain types of tariffs, like those meant to counter unfair trade practices from other countries.
By requiring Congress to approve tariffs, the bill shifts some power away from the President. This change is intended to prevent any single person from making major trade decisions without input from elected representatives.
Why It Matters
This bill could have a significant impact on everyday Americans by affecting the prices of goods. When tariffs are imposed, the cost of imported goods can go up, which might mean higher prices for things like cars, electronics, and clothing. By giving Congress more control, the bill aims to prevent sudden price hikes that can happen when tariffs are imposed quickly and without much notice.
For businesses, especially those that rely on importing goods, this bill could provide more stability. Knowing that tariffs won't suddenly change without Congress's approval can help businesses plan better and avoid unexpected costs. On the other hand, industries that benefit from tariffs, like steel manufacturing, might find it harder to get the protection they want.
Overall, the bill is about balancing the need for quick action in trade matters with the need for careful consideration and input from Congress. It seeks to ensure that decisions about tariffs are made with a broader perspective on their impact on the economy and people's lives.
Key Facts
- Cost/Budget Impact: There is no direct cost or budget impact reported, but the bill could affect tariff revenue by limiting how long tariffs can be in place without approval.
- Timeline for Implementation: The bill would take effect immediately upon passage, with key operational dates being 48 hours for notifications and 60 days for tariff expiration without approval.
- Number of People Affected: The bill impacts importers, exporters, consumers, and manufacturers across the U.S., affecting industries like agriculture, manufacturing, and retail.
- Key Dates: Introduced on April 3, 2025, and currently referred to the Senate Finance Committee with no further actions taken.
- Bipartisan Support: The bill has bipartisan cosponsors, including both Democrats and Republicans, highlighting its cross-party appeal.
- Exclusions: The bill does not apply to antidumping or countervailing duties, focusing instead on broader tariffs imposed for national security or other reasons.
- Historical Context: The bill responds to recent debates over presidential tariff powers, especially following the aggressive use of tariffs during the Trump administration.
Arguments in Support
- Restores Balance of Power: Supporters argue that the bill restores the constitutional balance by giving Congress more control over tariffs, which is their role under the Constitution.
- Protects Consumers and Businesses: By requiring impact assessments and limiting tariffs to 60 days without approval, the bill aims to protect consumers from sudden price increases and businesses from unexpected costs.
- Promotes Deliberate Trade Policy: The bill encourages a more thoughtful and bipartisan approach to trade policy, reducing the risk of inconsistent decisions across different administrations.
- Reduces Market Uncertainty: Automatic expiration of tariffs without congressional approval can lead to more predictable trade rules, benefiting both exporters and importers.
- Enhances Transparency: The requirement for the President to notify Congress with reasons for tariffs increases transparency and allows for greater public oversight.
Arguments in Opposition
- Constrains Presidential Authority: Critics argue that the bill severely limits the President's ability to respond quickly to national emergencies or unfair trade practices by requiring congressional approval for most tariffs.
- Reduces Negotiating Power: The 60-day limit on tariffs without approval could weaken the U.S.'s ability to use tariffs as a bargaining tool in international negotiations.
- Harms Reshoring Efforts: Opponents believe that the delays and uncertainty caused by the bill could discourage efforts to bring manufacturing back to the U.S., which is important for national security.
- Increases Market Volatility: The potential for short-term tariffs and ongoing congressional debates could create uncertainty for businesses and consumers.
- Slows Response to Threats: The requirement for quick notifications and congressional resolutions might hinder the President's ability to act swiftly in response to sudden trade threats.