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International Trade Legislation Introduced

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International Trade Legislation Introduced
The U.S. Chamber of Commerce, Business Roundtable and dozens of trade associations are backing legislation to require congressional approval before a president imposes national-security tariffs. Trump used the authority in 2018 to slap duties on steel and aluminum imports, and he’s been threatening for months to do the same with foreign-made vehicles and parts.

Similar legislation didn’t advance last year, and it’s unclear what the prospects are with the new Congress. However, the business groups say Trump’s metals tariffs and retaliatory duties which came in response have hurt U.S. industry, farmers and workers - and that Congress should use its constitutional role in trade policy.

Trump relied on Section 232 of the Trade Expansion Act to impose duties on imports of steel and aluminum from most countries - including Canada, Mexico and other allies. He separately has imposed duties on $250 billion in Chinese imports in response to a trade imbalance and allegations of unfair trade practices. The Trump administration is making progress in trade talks with the Chinese government to defuse their trade war, but the outcome of negotiations remains uncertain.

Trade groups criticized using national security as justification for the metals duties and are opposing Trump’s threats to impose tariffs of as much as 25 percent on foreign-made cars and auto parts. The Commerce Department has until Feb. 17 to deliver to Trump the findings of an investigation.

The Bicameral Congressional Trade Authority Act introduced on Jan. 30 in the House and Senate would give Congress 60 days to approve any proposed trade actions under Section 232 of the law, and change the definition of “national security” with regards to tariffs. Similar efforts didn’t advance last year, and Republican Senator Pat Toomey of Pennsylvania, one of the bill’s sponsors, said he’s still trying to gauge support.

 

 

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