H.R. 6991: Fair Trade Act of 2026

The Fair Trade Act of 2026 proposes to impose additional import duties on goods brought into the United States, aiming to influence trade balances between the U.S. and other countries. Here are the key points of the bill:

1. Additional Duties on Imports

Starting from the year the Act is enacted, a new system of duties would be established based on the trade balance with the exporting country:

• 10% Ad Valorem Duty: This would apply to goods imported from countries where the U.S. has a trade surplus, meaning the U.S. exports more to that country than it imports.
• 15% Ad Valorem Duty: This would apply to goods imported from countries with which the U.S. has a trade deficit, indicating that the U.S. imports more from that country than it exports.

2. Relation to Existing Duties

Any new duties imposed by this bill would be in addition to any other existing import duties that may apply to those goods, meaning businesses would have to pay the regular duties plus the new additional duties specified in the bill.

3. Reduction of Additional Duties

The President of the United States would have the authority to reduce the additional duties stipulated in the bill if it is deemed necessary for the national interest or national security. However, this reduction could only be made after consulting with specific congressional committees, namely:

• Committee on Ways and Means of the House of Representatives
• Committee on Finance of the Senate

This means that while the duties are generally set at 10% or 15%, there is a legal mechanism for reducing them if certain conditions are met, following consultations with Congress.

Relevant Companies

• None found