# Understanding the United States Reciprocal Trade Act

This bill would give the President broad power to impose new tariffs (taxes on imported goods) on products from other countries if the President believes those countries charge higher tariffs on American goods or use other trade barriers that disadvantage U.S. businesses. Essentially, it's designed to let the President match what other countries do—if they charge us 25% on our cars, the President could charge them 25% on their cars.

Here's how it would work in practice. The President could look at any product and decide that a foreign country is treating American exporters unfairly. If that determination is made, the President could either try to negotiate a deal to lower those barriers, or simply impose matching tariffs without waiting for negotiations to succeed. For example, if the bill determines that European countries charge higher tariffs on American automobiles than America charges on European cars, the President could immediately raise tariffs on European vehicles coming into the U.S. The President would have 30 days to notify Congress and allow public comment before these new tariffs take effect, but wouldn't need Congressional approval to proceed.

The bill also includes a safety valve: Congress could vote to disapprove specific tariffs the President imposes, though it would require a two-thirds majority in both chambers to block them—a very high bar. The President's authority under this bill would last for three years initially, and could be extended for another three years if Congress doesn't vote to disapprove the extension. For everyday Americans, this could mean higher prices on imported goods like cars, electronics, and clothing, since companies typically pass tariff costs to consumers. It could also affect American exporters if other countries retaliate with their own tariffs on U.S. products.

United States Reciprocal Trade Act

Moore, Riley M.

United States Reciprocal Trade Act This bill expands presidential trade authorities.The bill allows the President, in certain circumstances, to (1) negotiate with a foreign country for tariff reductions on exported U.S. goods, or (2) impose additional duties on imported goods. Specifically, the President may take these actions if it is determined that the country (1) when importing a good from the United States, applies a higher rate of duty on that good than the rate imposed by the United States when the good is imported from that country; or (2) similarly imposes other,&nbsp;nontariff trade restrictions on that good. This authority&nbsp;shall be effective for three years, subject to a three-year renewal.The President must terminate a rate of duty increase under this bill if the country no longer applies such higher rates or nontariff trade restrictions, or if the higher rate is no longer in the interest of the United States.The bill also requires the President to consult with and notify Congress regarding the intention of the President to increase a rate of duty on imported goods.Congress may nullify a rate of duty increase implemented under this bill through a joint resolution of disapproval.