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Tariffs

Bipartisan Secure Trade Act Introduced to Rebalance Global Trade

Strategic Insights

— 1 min read

Congressman Jared Golden (ME-02) and co-lead Congressman Greg Steube (FL-17) introduced the Secure Trade Act, a bipartisan legislation aiming to assert Congress' role in crafting trade policy and target countries of concern to improve the United States' economic security. The bill seeks to rebalance global trade, restore American industrial strength, and reduce reliance on adversarial supply chains.

Key Takeaways:

  • The Secure Trade Act codifies a 10 percent baseline tariff on all imported goods and revises the Harmonized Tariff Schedule to create a separate category of tariffs for the People's Republic of China.
  • The Act introduces a 35 percent tariff on nonstrategic goods and a 100 percent tariff on strategic goods, phased in over five years, to support a gradual reduction of the US reliance on China for strategic goods.
  • The legislation expands the authority of the Committee on Foreign Investment in the U.S. (CFIUS) to block foreign investments from entities connected to Countries of Concern in both new and existing facilities or businesses.
  • The bill has been endorsed by American Compass and the Coalition for a Prosperous America, who see it as a crucial step toward rebalancing global trade and restoring American industrial strength.
  • Reps. Jared Golden and Greg Steube deserve credit for this bold effort to reassert US economic independence, stabilize the trade balance, and protect long-term national interests.

Statistics:

  • The US has a trade deficit with China of $295 billion.
  • More than 12,000 jobs were lost or displaced in Maine between 2001 and 2018 as a result of the US trade deficit with China.
  • The Secure Trade Act aims to support a gradual reduction of the US reliance on China for strategic goods, including items such as jet engine parts, microdrones, and freeze dryers.
  • The legislation's critics argue that the tariffs and trade policies could lead to job losses and supply chain disruptions.

Sources:

  • [Rep. Jared Golden, Secure Trade Act Press Release](https://golden.house.gov/media/press-releases/golden-steube-introduce-bipartisan-secure-trade-act)
  • [American Compass, Secure Trade Act Endorsement](https://www.americancompass.org/)
  • [Coalition for a Prosperous America, Secure Trade Act Endorsement](https://www.prosperousamerica.org/)

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