S. 5315: Trade Deficit Elimination Act of 2026

This bill would create a system for identifying countries, customs territories, or other trading partners with which the United States has a bilateral trade deficit in goods—meaning the U.S. buys more goods from that partner than it sells to it.

What it would require the government to do

• Within 30 days after the bill becomes law, and then every year on April 1, the U.S. Trade Representative would have to review trade data for each trading partner.
• If the U.S. has a goods-trade deficit with a partner, that partner would be formally designated a trade deficit economy.
• The Trade Representative would publish a list of those partners in the Federal Register, along with the size of each deficit.
• The designations would be based on the best available federal trade data, using the most recent finalized calendar-year data available as of January 31 each year.

What it would allow the government to do

After the list is published, and within 15 days, the Trade Representative—following the President’s direction—could impose new duties (tariffs), raise or lower them, suspend them, or otherwise change import charges on goods coming from any trade deficit economy.

The stated purpose of these duties would be to eliminate the bilateral trade deficit in goods with that partner. The bill also says any such duties would be in addition to any other duties already required by law.

Possible exemptions

The bill allows the Trade Representative, again under the President’s direction, to exempt certain goods from these extra duties. Exemptions could apply to goods if the duties would:

• cause shortages of raw materials in the United States;
• disrupt access to critical goods, essential raw materials, or items needed for national defense;
• or cover goods that cannot be produced in sufficient quantity or at reasonable prices in the United States, and cannot be obtained from countries that are not trade deficit economies.

Consultation and negotiations

Before changing duties, the Trade Representative would have to consult with the House Ways and Means Committee and the Senate Finance Committee.

The bill would also authorize the Trade Representative to negotiate bilateral trade agreements with trade deficit economies. Those agreements would need to aim at substantially reducing the trade deficit in goods, and could include commitments by the other country to:

• change policies or practices that contribute to the deficit;
• buy more U.S. goods; or
• limit or reduce exports to the United States.

Limits on authority

The bill says it does not give the President or the Trade Representative any powers beyond what is specifically written in the act. Their actions would have to follow the bill’s rules and limits.

Relevant Companies

• FDX — FedEx could be affected indirectly if higher import duties change shipping volumes, cross-border trade flows, or demand for imported goods.
• UPS — UPS could be affected indirectly by changes in international trade volumes and import activity.
• WMT — Walmart could be affected if tariffs raise the cost of imported merchandise it sells in the U.S.
• TGT — Target could face higher costs on imported consumer goods if duties are imposed on major sourcing countries.
• AMZN — Amazon could be affected by higher costs for imported goods sold through its marketplace and retail operations.
• DE — Deere could be affected if tariffs or exemptions change the cost of imported components or equipment inputs.