Legislative Update: Tariffs, Critical Minerals, USMCA

For more information on pursuing trade policy interests through the legislative process, please contact Nicole Bivens Collinson at (202) 730-4956 or via email.

Tariffs. S.J.Res. 77 (introduced Sept. 16 by Sens. Kaine, D-Va., and Paul, R-Ky.) would terminate the national emergency declared under the authority of the International Emergency Economic Powers Act to impose tariffs on articles imported from Canada. S.J.Res. 81 (introduced Sept. 18 by Sens. Kaine and Paul) would take similar action with respect to tariffs on imports from Brazil.

The No Tariffs on Groceries Act (H.R. 5446, introduced Sept. 16 by Rep. Stevens, D-Mich.) would require congressional authorization if the president proposes to impose import tariffs on food and stipulate that such tariffs cannot take effect without a subsequent act of Congress to approve them.

The India Shrimp Tariff Act (S. 2868, introduced Sept. 18 by Sen. Cassidy, R-La.) would increase the rate of duty on shrimp originating from India.

Critical minerals. The Restoring American Mineral Security Act (S. 2839, introduced Sept. 17 by Sens. Cortez Masto, D-Nev., and Hagerty, R-Tenn.) would exempt countries that join a new Critical Minerals Security Alliance from tariffs on critical minerals and certain products made from them. To become members of this alliance countries would have to agree to (1) increase tariff rates for critical minerals from foreign countries and/or entities of concern to match U.S. Section 301 tariff rates on China, and (2) take steps to address unfair trade practices of non-members, including (a) pushing back against countries attempting to hide the country of origin of minerals they are shipping, (b) screening their investments into non-member nations, and (c) ensuring effective trade remedies are in place to guard against underpricing and illicit subsidization.

USMCA. The Protecting the USMCA from Harmful Chinese Investment Act (S. 2861, introduced Sept. 18 by Sens. McCormick, R-Pa., and Cortez Masto, D-Nev.) would direct the U.S. trade representative to establish as a negotiating objective in next year’s review of the U.S.-Mexico-Canada Agreement that Canada and Mexico (1) implement a legislative and regulatory framework for reviewing foreign investment for national security risks that is similar to the Committee on Foreign Investment in the U.S. and (2) coordinate to address shared threats from investments by non-market economy countries.