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119-s-5315119th Congress

Trade Deficit Elimination Act of 2026

Sponsored By: Senator Scott, Rick [R-FL]

Introduced

Summary

Creates a system to identify and act on U.S. bilateral goods deficits. The bill directs the United States Trade Representative to name trading partners with bilateral deficits and, with Presidential direction, impose or adjust import duties and pursue bilateral agreements to shrink those deficits.

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  • Families and households: Targeted duties on imports could raise prices for some consumer goods in affected categories.
  • Workers and domestic manufacturers: The bill aims to protect U.S. producers by making imports more expensive and by securing commitments from partners to buy U.S. goods or change practices.
  • Importers, retailers, and foreign exporters: Importers and foreign suppliers face new risks of added duties, exemptions rules, and annual designation lists.
  • U.S. trade officials: The United States Trade Representative must publish an annual list of "trade deficit economies" using recent final data, consult Congress before changing duties, and may negotiate bilateral deals to reduce deficits.

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Bill Overview

Analyzed Economic Effects

3 provisions identified: 0 benefits, 0 costs, 3 mixed.

Bilateral deals to reduce trade deficits

This bill would let the U.S. Trade Representative negotiate bilateral trade agreements with listed deficit partners. Agreements would aim to substantially reduce the goods trade deficit. They could include commitments by the partner to change policies, buy U.S. goods, or restrain exports to the United States. This negotiation authority would take effect upon enactment.

Higher import duties for deficit countries

This bill would let the U.S. Trade Representative, under the President's direction, add, raise, lower, suspend, or change import duties on goods from any listed deficit country. Any duty would be added on top of existing duties. The Trade Representative must consult the House Ways and Means and Senate Finance Committees before acting. The Trade Representative could exempt goods when duties would cut off raw materials, disrupt critical or defense supplies, or when goods cannot be made in the U.S. at reasonable prices or found from other sources. Actions could begin no later than 15 days after the deficit list is published.

Annual list of bilateral trade deficits

This bill would require the USTR to publish a yearly list of trading partners with which the United States has a goods trade deficit. The first list must be published within 30 days of enactment, and then on April 1 each year. Each deficit value must use finalized calendar-year data available by January 31 and be rounded to the nearest millionth of a dollar.

Sponsors & CoSponsors

Sponsor

Scott, Rick [R-FL]

FL • R

Cosponsors

  • Sen. Cramer, Kevin [R-ND]

    ND • R

    Sponsored 8/6/2026

  • Sen. Sheehy, Tim [R-MT]

    MT • R

    Sponsored 8/6/2026

Roll Call Votes

No roll call votes available for this bill.

View on Congress.gov
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