Fair Trade Act of 2026
Summary
What This Bill Does
The Fair Trade Act of 2026 creates broad additional ad valorem duties on goods imported into the United States. Starting with each calendar year after enactment, imports from countries with which the United States has a trade surplus face an extra 10 percent duty, while imports from countries with which the United States has a trade deficit face an extra 15 percent duty. These duties are added on top of any other tariff already imposed by law. The President may reduce a required duty to a rate greater than zero for a specific good if the President determines that reduction is in the national interest or national security interest, but must first consult with the House Ways and Means Committee and the Senate Finance Committee.
Who Benefits and How
Domestic manufacturers, import-competing producers, and workers in import-sensitive industries benefit because foreign goods would become more expensive relative to U.S.-made goods. Treasury revenue collectors benefit from a large new tariff base. Some national-security supply chain advocates benefit because the President retains authority to reduce rates selectively instead of eliminating them. Congressional tax-writing committees benefit from mandatory consultation before rate reductions.
Who Bears the Burden and How
Importers, retailers, wholesalers, manufacturers using imported inputs, and U.S. consumers bear higher costs because the 10 percent or 15 percent duty is layered on top of existing tariffs. Foreign exporters and trade partners may lose U.S. market share and may retaliate. Customs and Border Protection must classify country-balance status, collect the additional duties, update entry systems, and administer any presidential reductions. The President and trade staff must make national-interest or national-security determinations before lowering a rate.
Key Provisions
- Requires an additional 10 percent duty on goods imported from countries with which the United States has a trade surplus.
- Requires an additional 15 percent duty on goods imported from countries with which the United States has a trade deficit.
- Requires the duties to apply in addition to any other duty imposed by law.
- Authorizes the President to reduce a duty only to a rate greater than zero for national interest or national security reasons.
- Requires consultation with House Ways and Means and Senate Finance before a presidential reduction.
Evidence Chain:
This summary is generated from the full bill text using AI analysis. Expand "Detailed Analysis" below for identified beneficiaries/burden bearers with clause-level evidence links.
At a Glance
What This Bill Does
Imposes annual additional tariffs on all imported goods at 10 percent for goods from countries where the United States has a trade surplus and 15 percent for goods from countries where the United States has a trade deficit, with limited presidential authority to reduce rates above zero after consulting tax-writing committees.
Key Policy Areas
Trade, Manufacturing, Retail, Consumers
Primary Purpose
Imposes annual additional tariffs on all imported goods at 10 percent for goods from countries where the United States has a trade surplus and 15 percent for goods from countries where the United States has a trade deficit, with limited presidential authority to reduce rates above zero after consulting tax-writing committees.
Policy Domains
Substantive provisions
Identified Gains
- Domestic manufacturers
- Import-competing producers
- Workers in import-sensitive industries
- Treasury revenue collectors
- Congressional tax-writing committees
Identified Costs
- Importers
- Retailers
- Wholesalers
- Manufacturers using imported inputs
- U.S. consumers
- Foreign exporters
- Customs and Border Protection staff
Legislative Progress
In CommitteeMs. Van Duyne introduced the following bill; which was referred …
Referred to the House Committee on Ways and Means.
Introduced in House
Stakeholder Effects
cui bono?How this legislation distributes effects. Mention counts reflect frequency, not effect magnitude.
Domestic manufacturers, Import-competing producers
Positive-direction: Domestic manufacturers
Negative-direction: Import-competing producers
Bill Structure & Actor Mappings
Who is "The Secretary" in each section?
We use a combination of our own taxonomy and classification in addition to large language models to assess meaning and potential beneficiaries. High confidence means strong textual evidence. Always verify with the original bill text.
Learn more about our methodology