Golden, Steube introduce bipartisan Secure Trade Act

WASHINGTON — Congressman Jared Golden (ME-02) today introduced the Secure Trade Act, legislation that would assert Congress’ role in crafting trade policy and target countries of concern to improve the United States’ economic security. 

“It’s long past time that Congress got some skin in the game in setting our nation’s trade and tariff policies,” Golden said. “The free trade status quo has cost Americans jobs and left us reliant on other nations for strategic goods critical for our nation’s safety and prosperity. The Secure Trade Act incentivizes the production and purchase of domestic goods, increases our economic security and makes clear that U.S. trade policy will be used to advance our interests, not those of our competitors.”

The bipartisan legislation is co-led by Republican Congressman Greg Steube (FL-17), a member of the House Ways and Means Committee, which has jurisdiction over tariff and trade policy. 

“American workers have the right to compete on a level playing field," Steube said.“If foreign governments insist on tariffing our exports, then American industries deserve the same protections to remain competitive. This bill holds serial trade manipulators like China accountable, reduces the offshoring of manufacturing jobs and secures America's long-term economic and national security for generations to come.”

The Secure Trade Act includes several provisions, including: 

• Baseline tariff rate: The Act codifies the 10 percent tariff baseline on all imported goods.
• New treatment of Chinese imports: The Act revises the Harmonized Tariff Schedule to create a separate category of tariffs for the People’s Republic of China, including a 35 percent tariff on nonstrategic goods and a 100 percent tariff on strategic goods, both phased in over five years. Strategic goods include items such as jet engine parts, microdrones used for agricultural and military purposes, and freeze dryers used to preserve sensitive medications. The Act would allow the president to modify these rates by certifying to Congress that a modification is in the national interest. The Act would also require goods imported from China to be appraised based on their U.S. value. These provisions would support a gradual reduction of our reliance on China for strategic goods. The U.S. 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 this trade deficit.
• Expansion of federal authority over foreign investment: The Act expands the authority of the Committee on Foreign Investment in the U.S. (CFIUS), empowering it to block foreign investments from entities connected to Countries of Concern in both new and existing facilities or businesses. This provision could be used to block foreign investments such as those that have led to the establishment of illegal cannabis grow houses in Maine.

At the time of introduction, the bill has been endorsed by American Compass and the Coalition for a Prosperous America:

“The bipartisan Secure Trade Act is a crucial step toward rebalancing global trade, restoring American industrial strength, and reducing our reliance on adversarial supply chains,” said Mark DiPlacido, policy advisor at American Compass. “The bill’s 10 percent global minimum tariff will help lower the U.S. trade deficit, raise revenue and level the playing field for American workers and manufacturers. The legislation’s provisions to create a separate tariff schedule for China are long overdue to address China’s abusive economic practices, including intellectual property theft, suppressed wages and predatory industrial subsidies. The bill also strengthens domestic investment screening to ensure the United States isn’t selling its assets to those who don’t share our interests. Reps. Jared Golden (D-ME) and Greg Steube (R-FL) deserve tremendous credit for this bold and necessary effort to reassert U.S. economic independence, stabilize our trade balance and protect our long-term national interests.”

“Our country needs tariffs, both to protect industries and as a preferred funding source for the government," said John Toomey, CEO of the Coalition for a Prosperous America (CPA). "This bill codifies the 10 percent Universal Tariff that President Trump campaigned on, bringing in much needed revenue, as well as updates the U.S. tariff system with a China-specific tariff schedule that reflects their clear record of abusive economic practices. CPA salutes Representatives Golden and Steube for putting America first.”

Full text of the legislation can be found here.

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