U.S. Sen. Kirsten Gillibrand has introduced legislation that would repeal tariffs imposed under a rarely used federal trade provision, including a 50% tariff on Canadian goods, and require refunds for duties already paid.
The New York Democrat introduced the Banning Antiquated Duties and Delivering Equitable American Levies Act, known as the BAD DEAL Act, with Sen. Peter Welch of Vermont. Rep. Brad Schneider of Illinois introduced companion legislation in the House in August.
The bill would remove all tariffs levied under Section 338 of the Tariff Act and refund Americans for duties collected under that authority. Gillibrand's office said the measure would cover the Trump administration's 50% tariffs on Canada.
Sens. Jacky Rosen of Nevada and Amy Klobuchar of Minnesota are Senate cosponsors. The release did not identify a committee assignment, hearing date or scheduled vote, and the proposal would need approval from both chambers before going to the president.
Sponsors point to New York trade costs
Gillibrand framed the proposal around New York's extensive trade with Canada, one of the state's largest markets for exports of goods and services. Her office said New York imports more than $20 billion in Canadian products each year.
The senator's release also said a new 50% tariff on Canada could cost U.S. businesses and households up to $10 billion annually. It attributed more than $5,500 in added costs for New York families to tariffs and other Trump administration policies, though the release did not provide the methodology behind that household estimate.
Gillibrand said the tariffs would raise costs for New York families and called for renewed negotiations with Canada. Welch said the measures would cause economic damage on both sides of the border and argued that Congress should reclaim its constitutional role in setting trade policy.
Schneider said Canada is Illinois' largest trading partner and that duties imposed under Section 338 are increasing pressure on households. He said the legislation is intended to repeal the authority and return money collected from Americans.
Bill follows earlier tariff proposals
Gillibrand's office said she has challenged Trump administration tariffs through several proposals. Last year, she joined 14 Senate colleagues in introducing the Small Business RELIEF Act, which sought to end tariffs affecting small businesses and refund duties they had paid.
In March, Gillibrand and other lawmakers introduced the Small Business Liberation 2.0 Act. That measure would exempt small businesses from another set of tariffs and return duties already collected from them.
The senator's release said previous tariffs had been found unconstitutional and had raised costs for New Yorkers, but it did not identify the court decision referenced. It also cited public opposition to the administration's tariff policies without providing specific poll results.
The BAD DEAL Act is a proposal and has not become law. If enacted as described by its sponsors, it would both end duties imposed through Section 338 and establish a refund for payments made under that authority.
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