H.R. 735 — United States Reciprocal Trade Act

This section declares 14 congressional findings concerning U.S. trade policy, including the asymmetry of tariffs and nontariff barriers imposed by trading partners (e.g., Europe on autos, Canada and Mexico on goods), the resulting U.S. goods trade deficit, the need for tariff reciprocity, and the President's authority to impose reciprocal tariffs.

This section authorizes the President, if determining that a foreign country imposes significantly higher duties or nontariff barriers (NTBs) on a particular good imported from the United States than the United States imposes reciprocally on that good from the country, to either (1) negotiate an agreement for the country to reduce or eliminate such duties or NTBs or (2) impose a matching duty rate on imports of the good from the country—equal to the foreign country's duty rate or the effective rate of its NTBs (alone or combined with its tariffs). In taking such actions and calculating effective NTB rates (with advice from the U.S. Trade Representative), the President must consider specified factors, including tariff classifications, physical characteristics and end uses of the good, trade levels and distortions, NTB purposes and transparency, and other relevant matters; the President may impose a lower matching rate if necessary and appropriate, further increase the U.S. rate to match any subsequent foreign increase, and terminate any increased U.S. rate once the foreign barrier is removed or continuation is not in the U.S. economic or public interest.

This section requires the President, before taking specified actions under section 3, to (1) provide notice to and consult with the House Committee on Ways and Means and the Senate Committee on Finance regarding any proposed action under section 3(b)(1); (2) prior to imposing an increased rate of duty on imports of a good from a foreign country under section 3(b)(2), publish notice in the Federal Register at least 30 days in advance, allow for public comment on the proposed imposition and level of duty, and seek advice from the advisory committees established under section 135 of the Trade Act of 1974 (19 U.S.C. 2155) (i.e., committees that provide advice to the President on trade negotiations, agreements, and policy from private sector, labor, industry, agriculture, and other representatives); and (3) promptly publish in the Federal Register notice of any action taken under section 3(f) or 3(g).

This section establishes an expedited congressional disapproval resolution process for presidential actions under section 3(b)(2) of the United States Reciprocal Trade Act to impose duties on imports of a specified good from a specified foreign country. Upon enactment of such a joint resolution—which requires an affirmative two-thirds vote of Members duly chosen and sworn in each chamber, is referred to the House Committee on Ways and Means or Senate Committee on Finance, and is not amendable—the presidential action ceases to have force and effect. The section is enacted as an exercise of each chamber's rulemaking power, superseding other rules only to the extent inconsistent and subject to change by either House.

This section requires the United States Trade Representative, before entering into an agreement with a foreign country under section 3(b)(1), to submit a report to the appropriate congressional committees and leadership describing (1) the agreement's implementation, including how it is consistent with and does not materially differ from or otherwise affect federal or state laws or regulations; (2) the impact on the competitiveness of United States businesses; and (3) the impact on United States consumers.

This section establishes a sunset of the President's authority under section 3(b)(2) of the United States Reciprocal Trade Act to impose rates of duty on imports of goods from foreign countries, limiting such authority to three years after enactment unless extended for an additional three years upon presidential request (submitted with a report three months prior describing actions taken) and enactment of no congressional disapproval resolution. The disapproval resolution—introduced by any member, referred in the House to the Committees on Ways and Means and Rules and in the Senate to the Committee on Finance, and subject to floor consideration under subsections (d) and (e) of section 152 of the Trade Act of 1974 (19 U.S.C. 2192)—may not be considered unless reported by the specified committees or after three years post-enactment. Actions taken under the authority prior to sunset remain in effect thereafter, and the President may continue to exercise the modification, termination, and reporting authorities under subsections 3(e), (f), and (g) with respect to such actions.

This section defines key terms for purposes of the Act: (1) "appropriate congressional committees and leadership" as the House Ways and Means Committee, Senate Finance Committee, Speaker of the House, House minority leader, Senate majority leader, and Senate minority leader; (2) "nontariff barrier" as any government-imposed measure or policy, other than a customs duty, that restricts, prevents, or impedes international trade in goods (e.g., import policies, sanitary and phytosanitary measures, technical barriers to trade, export subsidies, digital trade barriers); and (3) "rate of duty" as the customs duty rate applied to imports of a good, excluding antidumping or countervailing duties or duties under preferential tariff arrangements.