Trade Deficit Elimination Act of 2026

Key Points

• The bill requires the U.S. Trade Representative to identify every country that sells more goods to the U.S. than it buys, labeling them 'trade deficit economies' and publishing the list annually.
• The President, through the Trade Representative, could then impose new tariffs on goods from those countries specifically aimed at closing the trade gap.
• Certain goods would be exempt, including raw materials the U.S. can't produce enough of and items needed for national defense.
• The Trade Representative would also be authorized to negotiate deals with these countries to get them to buy more American products or export less to the U.S.
• The bill requires consultation with congressional trade committees before duties are imposed, and states it grants no authority beyond what Congress expressly delegates.