S4038119th CongressWALLET

Small Business Liberation 2.0 Act

Sponsored By: Senator Markey, Edward J. [D-MA]

Introduced

Summary

Shield small business importers from balance-of-payments duties and curb duty-driven price spikes. The Small Business Liberation 2.0 Act would exempt qualifying small business importers from certain balance-of-payments duties, require refunds to those importers, and impose a federal price-gouging ban tied to those duties.

Show full summary
  • Small businesses: Small business importers of covered goods would be exempt from those duties and eligible for refunds. Refunds are required to be paid within 90 days.
  • Consumers and households: The bill would ban price gouging for affected goods for 5 years after a duty takes effect or is increased. It defines an "unreasonably high price" using duty-linked cost calculations and a 180-day pre-change price baseline.
  • Agencies and states: The Federal Trade Commission would enforce the price rules, write implementing regulations, and coordinate with USTR, the International Trade Commission, Customs and Border Protection, and the Bureau of Labor Statistics. The ITC and BLS must report on prices and impacts starting 1 year after enactment and annually thereafter, and states may bring enforcement actions.

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Bill Overview

Analyzed Economic Effects

3 provisions identified: 2 benefits, 0 costs, 1 mixed.

Ban on duty-related price gouging

If enacted, the bill would bar sellers from charging an unreasonably high price for a covered good for five years after a covered duty is imposed, increased, or publicly planned. If enacted, an "unreasonably high" price would be measured against the average price in the 180 days before the duty or announcement, and sellers could only raise prices to cover costs directly caused by the duty and other legitimate costs. If enacted, the Federal Trade Commission would write rules, take complaints, set up a consumer reporting system within 180 days, coordinate with other agencies, and report annually on enforcement and price impacts. The price rule would not apply to sales by small business concerns.

Duty relief and refunds for small businesses

If enacted, the bill would exempt small business concerns from covered duties on goods they import or that are imported for their use. If enacted, the President would have to refund covered duties already paid for qualifying small businesses within 90 days after enactment. The bill would use the Small Business Act definition to decide who counts as a small business. These changes would lower import costs for qualifying small firms.

Key definitions and scope rules

If enacted, the bill would define key terms used across the Act. If enacted, "covered duty" would mean duties under section 122 of the Trade Act of 1974. If enacted, "covered good" would include goods subject to covered duties imposed on or after January 20, 2026, and "planned duty" would be shown by a written or spoken statement by certain senior officials. These definitions decide who gets exemptions, refunds, and price protections.

Sponsors & CoSponsors

Sponsor

Markey, Edward J. [D-MA]

MA • D

Cosponsors

  • Sen. Hirono, Mazie K. [D-HI]

    HI • D

    Sponsored 3/10/2026

  • Charles Schumer

    NY • D

    Sponsored 3/10/2026

  • Sen. Gillibrand, Kirsten E. [D-NY]

    NY • D

    Sponsored 3/10/2026

  • John Hickenlooper

    CO • D

    Sponsored 3/10/2026

  • Amy Klobuchar

    MN • D

    Sponsored 3/10/2026

  • Sen. Van Hollen, Chris [D-MD]

    MD • D

    Sponsored 3/10/2026

  • Sen. Rosen, Jacky [D-NV]

    NV • D

    Sponsored 3/10/2026

Roll Call Votes

No roll call votes available for this bill.

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