Wyden Introduces Bill to Protect American Consumers from Tariff-Imposed Tax Hikes

Wyden Introduces Bill to Protect American Consumers from Tariff-Imposed Tax Hikes

(Washington, DC) - U.S. Senators Ron Wyden, Jeanne Shaheen (D-NH) and Tim Kaine (D-VA) today introduced legislation that would protect American consumers and small business owners from rising prices caused by tariffs imposed on goods imported into the United States.

The Protecting Americans from Tax Hikes on Imported Goods Act would keep costs down by limiting the authority of the International Emergency Economic Powers Act (IEEPA)-which allows a President to immediately place unlimited tariffs after declaring a national emergency-while preserving IEEPA's use for sanctions and other tools.

"The International Emergency Economic Powers Act was never intended to serve as a blank check for the president to levy unlimited tariffs on allies and trading partners around the world. Congress has given the president other powerful tools to confront China and other nations that cheat on trade or pose national security threats. Donald Trump should use those tools in a targeted way to help American workers and businesses get ahead, not abuse IEEPA as a pretense to impose sweeping tariffs that will raise prices for working families with massive blanket taxes on the things they buy every day," said Wyden, Ranking Member of the Senate Finance Committee.

"At a time when Granite Staters are facing higher prices, we should be looking at every opportunity to cut costs - not raise prices on consumers and businesses," said Shaheen, Ranking Member of the Senate Foreign Relations Committee. "Our bill would help ensure that households across the country do not face immediate tax hikes on everyday goods like coffee and fresh vegetables."

"Virginians want lower-not higher-costs, but President-elect Trump plans to impose broad-based tariffs, which would raise the price of everyday goods and hurt every American," said Kaine. "That's why I'm joining my colleagues in introducing this legislation to make it a lot harder for the President to impose sweeping tariffs, by prohibiting the use of the International Emergency Economic Powers Act for that kind of action."

Broad import taxes on all imported goods could cause a typical American family's annual costs to increase by $3,900 and would severely raise prices on goods exchanged with Mexico, China and Canada, Oregon's top trading partners.

The authorities granted to the President through the IEEPA represent the broadest of the possible paths an administration can take to impose sweeping tariffs. The Protecting Americans from Tax Hikes on Imported Goods Act clarifies that the IEEPA may not be used to increase costs on American consumers and families by placing tariffs or tariff-rate quotas on imported goods. The legislation would preserve crucial national security tools granted to the President through the IEEPA authority to impose sanctions or to block all imports of goods that are dangerous to national security and would preserve the ability to push back on unfair trade practices of the People's Republic of China.