FRESNO, Calif. - Congressman Jim Costa (CA-21) is leading the charge to rein in presidential overreach on trade by cosponsoring and actively pushing
H.R. 407 - Prevent Tariff Abuse Act, legislation to block the President of the United States from using national emergencies as a loophole to impose tariffs without Congressional approval.
"Tariffs are a tax on American producers and consumers - plain and simple. In the San Joaquin Valley, where folks are already stretched thin by high costs, the last thing we need is a hidden tax making gas and groceries even more expensive. The Constitution gives Congress, not the President, the power to set trade policy. This bill is about restoring that authority and standing up for the people who are paying the price,"
said Congressman Costa.
BACKGROUND
California is the nation's leading agricultural state, supplying roughly one-third of fresh fruit and vegetables, while exporting more than $23.6 billion in agricultural goods annually. The San Joaquin Valley is at the heart of this export economy, producing almonds, dairy, citrus, grapes, and dozens of other crops that are shipped around the world.
The American Farm Bureau estimates that new retaliatory tariffs from Canada, Mexico, and China alone could impact
nearly $30 billion in agricultural exports. The U.S. Department of Agriculture found that California lost roughly $683 million in crop revenue due to President Trump's 2018 tariffs. This significantly impacted processed/fresh fruits ($374 million), tree nuts ($199 million), and dairy products ($68 million), all of which are major commodities grown in Congressman Costa's District and the San Joaquin Valley.
The
Yale Budget Labestimates that Trump's tariffs will raise costs for American consumers by $3,400 to $4,200 a year. Tariffs imposed by President Trump in 2018 led to higher prices across the country for consumer goods, like washing machines and solar panels, and for intermediate goods, like aluminum and steel.
The
Prevent Tariff Abuse Act would stop the President from bypassing Congress to impose tariffs or quotas that raise costs on families. Current law allows the President to declare a national emergency under the
International Emergency Economic Powers Act (IEEPA), originally meant to target hostile foreign threats with financial sanctions. However, it was never meant to let a President declare an "economic emergency" and impose tariffs on our allies without congressional approval.