The STABLE Trade Policy Act is a proposed law aiming to change how the U.S. handles tariffs on imports from allied countries. It seeks to shift the power to impose or increase these tariffs from the President to Congress, ensuring a more collaborative approach to trade policies with allies.
What This Bill Does
The STABLE Trade Policy Act, officially known as the Stopping Tariffs on Allies and Bolstering Legislative Exercise of Trade Policy Act, is designed to change how the United States imposes tariffs on imports from its allies. Currently, the President can unilaterally impose tariffs for reasons like national security. This bill would require the President to get approval from Congress before imposing or increasing tariffs on imports from certain allied countries.
The bill defines these "covered countries" as members of NATO, major non-NATO allies such as Australia, Israel, and Japan, and countries with which the U.S. has a free trade agreement. If the President wants to impose new tariffs on these countries, they must first submit a request to Congress. This request must include a description of the objective, a justification for the tariffs, an economic impact assessment, and any alternatives considered.
If Congress agrees with the President's request, they must pass a joint resolution to approve the tariffs. This process ensures that any decision to impose tariffs on allies is carefully considered and agreed upon by both the legislative and executive branches, rather than being a unilateral decision.
Why It Matters
The STABLE Trade Policy Act could have significant impacts on everyday Americans. By requiring congressional approval for tariffs on imports from allies, the bill aims to prevent sudden increases in the cost of goods that many people rely on. For example, tariffs on cars from Germany, electronics from Japan, or lumber from Canada could lead to higher prices for consumers.
By involving Congress in these decisions, the bill seeks to maintain stable trade relationships with allies, which could help keep prices stable for American families. It also aims to protect industries that rely on imports from these countries, such as manufacturers and farmers, from sudden and potentially damaging tariff hikes.
Key Facts
- Cost/Budget Impact: There is no direct cost or budget impact specified, as the bill focuses on procedural changes rather than financial appropriations.
- Timeline for Implementation: If passed, the bill would take effect immediately, applying to any new or increased tariffs proposed after its enactment.
- Number of People Affected: The bill could impact industries and consumers across the U.S., particularly those reliant on imports from the approximately 70 covered countries.
- Key Dates: Introduced on January 30, 2025, by Sen. Christopher A. Coons and cosponsored by Sen. Tim Kaine.
- Current Status: The bill is currently stalled in the Senate Finance Committee with a low likelihood of passage due to lack of bipartisan support.
- Historical Context: The bill responds to concerns about executive overreach in trade policy, particularly following the use of Section 232 tariffs on allies in recent years.
- Interesting Fact: The bill's acronym, "STABLE," creatively ties the policy to the concept of stability, emphasizing its goal of maintaining stable trade relationships.
Arguments in Support
- Strengthening Alliances: Supporters argue that the bill helps strengthen alliances with NATO members and other key partners by ensuring that trade policies are consistent and collaborative.
- Legislative Oversight: It restores legislative oversight in trade decisions, which can prevent impulsive or politically motivated tariff increases.
- Economic Stability: By requiring a thorough review and approval process, the bill aims to prevent sudden price hikes on imported goods, contributing to economic stability.
- Protecting Consumers: The bill could help protect consumers from inflationary pressures caused by sudden tariff increases on everyday goods.
Arguments in Opposition
- Restricting Executive Flexibility: Critics argue that the bill could limit the President's ability to respond quickly to international trade issues or threats.
- Bureaucratic Delays: The requirement for congressional approval could slow down the process of imposing necessary tariffs, potentially harming U.S. interests.
- Political Gridlock: Opponents worry that the need for congressional approval could lead to political gridlock, making it difficult to enact timely trade measures.