To establish a Tariff Response and Damages to Exports fund, and for other purposes.
Summary
H.R. 3982, the Tariff Response and Damages to Exports Fund Act, aims to establish a fund within the Treasury, called the TRADE Fund, to assist agricultural producers affected by trade-related market disruptions. The fund would be populated by tariff revenues collected on imported agricultural products (chapters 1-24 of the Harmonized Tariff Schedule). The Secretary of Agriculture would then use these funds to make payments to agricultural producers experiencing losses due to decreased exports, foreign trade barriers, or increased production costs.
Expected Effects
If enacted, this bill would create a mechanism to compensate agricultural producers for losses incurred due to trade policies and international trade disputes. The fund would provide financial relief to farmers and ranchers facing economic hardship. The authority for this fund would terminate on September 30, 2030, with any remaining funds being rescinded.
Potential Benefits
- Provides financial assistance to agricultural producers facing economic hardship due to trade-related issues.
- Allows the President to use tariff revenues to directly support the agricultural sector.
- Requires the Secretary of Agriculture to report on the economic impacts of trade disruptions and the assistance provided.
- Could help stabilize agricultural markets during periods of trade uncertainty.
- May incentivize the negotiation of fairer trade agreements to avoid the need for such funds.
Most Benefited Areas:
Potential Disadvantages
- The fund's reliance on tariff revenues could fluctuate depending on trade policies and import levels.
- The Secretary of Agriculture's discretion in determining eligibility and payment amounts could lead to perceived unfairness or political influence.
- The sunset provision could create uncertainty for agricultural producers relying on this assistance.
- May create dependence on government subsidies rather than promoting long-term market solutions.
- The use of tariffs may negatively impact consumers through higher prices.
Constitutional Alignment
The bill appears to align with the Commerce Clause (Article I, Section 8, Clause 3) which grants Congress the power to regulate commerce with foreign nations. The establishment of a fund and the delegation of authority to the Secretary of Agriculture are within Congress's power to implement such regulations. The bill also aligns with the General Welfare Clause (Article I, Section 8, Clause 1) as it aims to support the agricultural sector and mitigate the negative impacts of trade-related market disruptions.
Impact Assessment: Things You Care About ⓘ
This action has been evaluated across 19 key areas that matter to you. Scores range from 1 (highly disadvantageous) to 5 (highly beneficial).