Sen. Kirsten Gillibrand's effort to repeal tariffs on Canadian goods and refund duties paid under a 1930 trade law was blocked in the Senate as new U.S. import restrictions took effect Tuesday. The New York Democrat said in an updated statement that Republicans stopped her Banning Antiquated Duties and Delivering Equitable American Levies Act from advancing.
The legislation has not passed, so the tariff and import restrictions remain in force. Gillibrand's earlier proposal sought to repeal duties imposed under Section 338 of the Tariff Act of 1930 and refund duties already paid under that authority.
What changed Tuesday
The White House said certain Canadian alcoholic beverages became subject to an import ban at 12:01 a.m. EDT Sept. 29. Separate administration measures cover specified Canadian dairy products and motorcycles. The restrictions apply to products identified in federal proclamations, not every Canadian import.
The administration says Canada discriminates against U.S. commerce and argues that Section 338 authorizes its response. Gillibrand argues the duties and bans raise costs for Americans and that Congress should repeal the authority as used here. Those are opposing policy positions; the Senate's refusal to advance her measure did not resolve the underlying trade dispute.
Gillibrand's bill would have removed Section 338 duties and required refunds of duties collected under that provision. Her office has not described when refunds would be paid or how individual importers would claim them if the bill ever became law.
New York economic stakes
In her earlier announcement, Gillibrand said Canada is a major export market for New York and that the state imports more than $20 billion in Canadian goods annually. She has argued that tariff costs can flow through to New York businesses and households. Her latest statement cited a claim that families have paid more than $5,500 extra because of tariffs and other policies, but did not provide a period or method showing how much of that figure is attributable to these specific Canadian duties.
The senator introduced the BAD DEAL Act with Sen. Peter Welch. Sens. Jacky Rosen and Amy Klobuchar have been identified as cosponsors, and Rep. Brad Schneider introduced companion legislation in the House. Gillibrand has also backed separate bills aimed at other tariffs and small-business refunds; none of those measures automatically changes the current Canada restrictions.
The White House proclamation describes exceptions and transition rules for goods imported before the effective date. Businesses handling covered goods need the precise federal product lists and customs guidance, not a general statement that all trade with Canada has stopped.
The bill remains a proposal. For it to overturn the current policy, Congress would need to approve legislation and the president would need to sign it or Congress would need to override a veto. Gillibrand did not announce another Senate vote or a new date for consideration.
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