Golden introduces legislation to establish universal 10 percent tariff
‘America must once again become a nation of producers,’ says Congressman
WASHINGTON — Congressman Jared Golden (ME-02) today introduced the BUILT USA Act to incentivize American manufacturing, tackle the trade deficit and create jobs by establishing a 10 percent tariff on all imports.
“After decades of failed free trade agreements, the hollowing out of American industry and stagnating wages, we owe it to ourselves to ask real questions about what we prioritize in our economy,” Golden said. “The universal tariff — along with other policies to support domestic energy production, unions and manufacturing — is designed to reorient our economy from one focused on cheap goods and consumption to one centered on production and innovation.”
According to an analysis last month by the Congressional Budget Office (CBO), a universal 10 percent tariff would raise $2.2 trillion in revenue through 2034 — funds Golden advocates be used to reduce the deficit, subsidize American-made products and/or put money in middle-class families’ pockets by extending tax cuts set to expire this year.
America was once the net exporter in the global market, but the era of free trade reversed the trend. The trade balance — the difference between U.S. exports and U.S. imports — has been in deficit since the mid-70s and in recent years, the trade deficit has reached nearly $1 trillion.
Upon enactment, the BUILT USA Act (formally the Balance Unequal International Labor and Trade for the United States of America Act) would assess a 10 percent tariff to all goods and services imported into the United States. Each subsequent calendar year, this duty would increase or decrease by 5 percent depending on whether America maintains a trade deficit or surplus, respectively.
“America’s ever-expanding trade deficit is a clear sign that the current global trade regime is stacked against U.S. workers, industries, and communities,” said Oren Cass, founder and chief economist of American Compass. “Rep. Golden’s BUILT USA ACT will address this global trade imbalance head-on, reassert U.S. economic interests, and help reestablish the industrial base that made America the most innovative, prosperous and resilient nation in the world.”
“This bill represents a vital step toward generating revenue, driving economic growth and revitalizing America’s domestic industries,” said Zach Mottl, Chairman of the Coalition for a Prosperous America. “The heart of the American system of economics lies in empowering the middle class and fostering economic growth by supporting demand for U.S.-made goods. Millions of hardworking Americans have seen their wage growth stymied by imports and they deserve a system that ensures their wages rise faster than their costs. By tackling the trade deficit directly, this bill offers a pathway to strengthening U.S. industries and significantly reducing the debt burden. Tariffs proposed in this legislation are an essential tool to ensure the U.S. economy works for American workers and producers, not foreign competitors.”
The recent CBO analysis also found that while the 10 percent universal tariff could spur a short-term increase in prices of some foreign goods and services, it would likely reduce the cost of other goods and services, spur income growth in domestic industries and have no long-term effect on inflation.
Background:
Seventy years ago, employment in manufacturing made up more than 40 percent of nonfarm jobs in Maine, according to the Maine Department of Labor. Today, it’s less than 10 percent. The losses accelerated in the 1990s with the signing of the North American Free Trade Agreement (NAFTA), after which Maine lost one in three manufacturing jobs — with 25,000 lost to outsourcing alone. Forty percent of those who lost jobs had to take new ones with lower pay.
Golden has been a leading voice for reconfiguring U.S. trade policy in favor of American industry and workers. He also released the BUILT USA Actduring the 118th Congress and introduced legislation that would raise tariffs on Chinese imports of automobiles and energy components. He published an essay the same month on the importance of a robust production economy for national security and middle-class prosperity.
In 2019, he was one of only 41 House members to vote against the United States-Mexico -Canada Agreement, which he called “a missed opportunity to deliver real and lasting change” to the North American Free Trade Agreement (NAFTA).
Full text of the BUILT USA Act can be found here.
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