H.R. 4978

[Congressional Bills 119th Congress]
[From the U.S. Government Publishing Office]
[H.R. 4978 Introduced in House (IH)]

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119th CONGRESS
1st Session
H. R. 4978

To impose additional duties on imports of goods into the United States, 
and for other purposes.

_______________________________________________________________________

IN THE HOUSE OF REPRESENTATIVES

August 15, 2025

Mr. Golden of Maine (for himself and Mr. Steube) introduced the 
following bill; which was referred to the Committee on Ways and Means, 
and in addition to the Committees on Financial Services, Foreign 
Affairs, and Energy and Commerce, for a period to be subsequently 
determined by the Speaker, in each case for consideration of such 
provisions as fall within the jurisdiction of the committee concerned

_______________________________________________________________________

A BILL

To impose additional duties on imports of goods into the United States, 
and for other purposes.

Be it enacted by the Senate and House of Representatives of the 
United States of America in Congress assembled,

SECTION 1. SHORT TITLE.

This Act may be cited as the ``Secure Trade Act''.

TITLE I--IMPOSITION OF ADDITIONAL DUTIES ON IMPORTS OF GOODS INTO THE 
UNITED STATES AND EXCEPTION TO DUTY EXEMPTION FOR DE MINIMIS ENTRIES 
AND MODIFICATIONS TO ENTRY REGULATIONS

SEC. 101. IMPOSITION OF ADDITIONAL DUTIES ON IMPORTS OF GOODS INTO THE 
UNITED STATES.

(a) In General.--There shall be imposed a duty on imports of any 
good into the United States in an amount equal to 10 percent ad valorem 
of the good for each calendar year beginning on or after the date of 
the enactment of this Act.
(b) Duties To Be Considered Additional Duties.--The duty required 
by subsection (a) with respect to a good is in addition to any other 
duty imposed by law with respect to the good.
(c) Waiver.--
(1) In general.--Subject to paragraph (2), the President 
may reduce the percentage requirement in subsection (a) (but 
not to zero) with respect to goods in any economic sector of 
the United States if the President determines that such 
reduction is in the national interest or national security 
interest of the United States.
(2) Congressional consultation.--The President shall 
consult with the Committee on Ways and Means of the House of 
Representatives and the Committee on Finance of the Senate 
prior to exercising the authority of paragraph (1) for purposes 
of determining whether the economic sector that is to be the 
subject of the reduction of the percentage requirement in 
subsection (a) is appropriate.

TITLE II--TRADE WITH CHINA

SEC. 201. MODIFICATIONS TO RATES OF DUTY TO ADDRESS TRADE WITH THE 
PEOPLE'S REPUBLIC OF CHINA.

(a) Establishment of Rates of Duty With Respect to Articles of the 
People's Republic of China.--
(1) In general.--The President, by proclamation, shall 
revise the Harmonized Tariff Schedule of the United States (in 
this Act referred to as the ``HTS'') to include rates of duty 
applicable only with respect to articles of the People's 
Republic of China.
(2) Rates.--
(A) In general.--The rates of duty proclaimed under 
paragraph (1) shall be, except as provided by 
subsection (h), the rates of duty set forth in the 
column 2 rate of duty column of the HTS on the day 
before the date of the enactment of this Act, modified 
as required by subsection (b) and, if applicable, 
adjusted for inflation under subsection (c).
(B) Minimum rate of duty for non-strategic goods.--
A rate of duty described in subparagraph (A) of an 
article that is not an article specified in section 203 
that is less than 35 percent ad valorem as of the day 
before the date of the enactment of this Act shall be 
increased to 35 percent ad valorem.
(b) Modifications to Rates of Duty With Respect to Articles of the 
People's Republic of China.--
(1) Ad valorem duties and free rates of duty.--
(A) In general.--A rate of duty set forth in the 
column 2 rate of duty column of the HTS that is 
expressed as a percentage, or that is free, shall, 
except as provided by subparagraph (B) or (C), continue 
to apply to articles of the People's Republic of China.
(B) Minimum rate of 100 percent for certain 
articles.--In the case of an article specified in 
section 203, a rate of duty described in subparagraph 
(A) that is less than 100 percent ad valorem as of the 
day before the date of the enactment of this Act shall 
be increased to 100 percent ad valorem.
(2) Specific and compound rates of duty.--
(A) In general.--A rate of duty set forth in the 
column 2 rate of duty column of the HTS that is 
expressed as a specific or compound rate of duty shall, 
except as provided by subparagraphs (B) and (C), 
continue to apply to articles of the People's Republic 
of China, subject to adjustment for inflation under 
subsection (c).
(B) Minimum rate equivalent to 100 percent ad 
valorem for certain articles.--In the case of an 
article specified in section 203, a rate of duty 
described in subparagraph (A) that is less than the 
equivalent of 100 percent ad valorem, after adjustment 
for inflation under subsection (c), shall be increased 
to be equivalent to 100 percent ad valorem.
(c) Adjustment of Duties for Inflation.--
(1) In general.--As soon as practicable after the date of 
the enactment of this Act, and on December 31 of each year 
thereafter, the President shall proclaim modifications to 
adjust the specific and compound rates of duty described in 
subsection (b)(2), as modified under that subsection, to 
reflect the increase in the average of the Consumer Price Index 
for the most recent full calendar year for which data are 
available compared to the Consumer Price Index for calendar 
year 1930.
(2) Effective date of inflation adjustments.--
(A) First adjustment.--
(i) In general.--The first adjustment 
required by paragraph (1) shall apply with 
respect to articles entered, or withdrawn from 
warehouse for consumption, on or after January 
1, 2025.
(ii) Rules for retroactive collection.--Not 
later than 180 days after the date of the 
enactment of this Act, the Commissioner of U.S. 
Customs and Border Protection shall issue rules 
for the retroactive collection of duties under 
clause (i).
(B) Subsequent adjustments.--Each adjustment 
required by paragraph (1) after the first such 
adjustment shall apply with respect to articles 
entered, or withdrawn from warehouse for consumption, 
on or after January 1 of the year beginning after the 
issuance of the proclamation.
(3) Base rate.--For purposes of the adjustment required by 
paragraph (1), the President shall use the rate of duty 
applicable under the column 2 general rate of duty column of 
the HTS, as modified under subsection (b), as the base rate.
(4) Consumer price index defined.--For purposes of this 
subsection, the term ``Consumer Price Index'' means the 
Consumer Price Index for All Urban Consumers published by the 
Bureau of Labor Statistics of the Department of Labor.
(d) Phase-In of Duty Increases.--The President shall, by 
proclamation, phase-in the application of the duty increases required 
by subsection (a), as modified under subsection (b) and, if applicable, 
adjusted for inflation under subsection (c), as follows:
(1) On and after the date that is 180 days after the date 
of the enactment of this Act, 10 percent of the total duty 
increase with respect to an article shall apply.
(2) On and after the date that is 2 years after such date 
of enactment, 25 percent of the total duty increase with 
respect to an article shall apply.
(3) On and after the date that is 4 years after such date 
of enactment, 50 percent of the total duty increase with 
respect to an article shall apply.
(4) On and after the date that is 5 years after such date 
of enactment, 100 percent of the total duty increase with 
respect to an article shall apply.
(e) Information From International Trade Commission.--
(1) In general.--Not later than July 1 of each year, the 
United States International Trade Commission (in this Act 
referred to as the ``Commission'') shall submit to the 
President the information described in paragraph (2) with 
respect to articles that are subject to a specific or compound 
rate of duty under the column 2 rate of duty column of the HTS 
and for which sufficient data are available to calculate the ad 
valorem equivalent of those rates of duty.
(2) Information described.--The information described in 
this paragraph is an identification of which articles specified 
in section 203 have an ad valorem equivalent rate of duty of 
less than 100 percent after adjustment for inflation under 
subsection (c) and, for each such article, a calculation of the 
specific or compound rate of duty that would increase the rate 
of duty to be equivalent to 100 percent ad valorem.
(f) Treatment of Articles Imported Only From the People's Republic 
of China.--
(1) Tariff-rate quotas.--
(A) Annual adjustments.--
(i) In general.--Notwithstanding any other 
provision of law, the President shall, by 
proclamation, establish a tariff-rate quota 
that shall--
(I) apply to each article imported 
only from the People's Republic of 
China; and
(II) be set for each calendar year 
at an amount that is equal to the 
amount, if any, by which consumption of 
the article in the United States in the 
most recent calendar year for which 
data are available exceeds production 
of the article in the United States 
during that calendar year.
(ii) Determination of the people's republic 
of china as only source.--For purposes of 
subparagraph (A)(i)(I), the President shall 
determine that an article is imported only from 
the People's Republic of China if official 
trade statistics of the Department of Commerce 
for the most recent full calendar year for 
which data are available for the applicable 
subheading of any of chapters 1 through 97 of 
the HTS, as reported on entry summary forms, 
show that the article is imported only from the 
People's Republic of China and from no other 
country.
(B) Entry of in-quota articles.--Notwithstanding 
any other provision of this section, an article 
described in subparagraph (A)(i)(I) that is entered 
before the applicable tariff-rate quota is reached for 
the calendar year in which the article is entered 
shall--
(i) during the 3-year period beginning on 
the date of the enactment of this Act, be 
subject to the rate of duty applicable to the 
article on the day before such date of 
enactment; and
(ii) after the period described in clause 
(i), be subject to the rate of duty applicable 
under subsection (a), as modified under 
subsection (b) and as phased-in under paragraph 
(2).
(C) Entry of above-quota articles.--Notwithstanding 
any other provision of this section, an article 
described in subparagraph (A)(i)(I) that is entered 
after the tariff-rate quota is reached for the calendar 
year in which the article is entered shall be subject 
to a rate of duty of 100 percent ad valorem.
(2) Phase-in of duty increases.--Beginning on the date that 
is 3 years after the date of the enactment of this Act, the 
President may, by proclamation, phase-in the application of the 
duty increases required by paragraph (1)(B) with respect to 
each article described in paragraph (1)(A)(i)(I) and entered 
before the applicable tariff-rate quota under paragraph (1) is 
reached for the calendar year in which the article is entered, 
as follows:
(A) On and after the date that is 3 years after the 
date of the enactment of this Act, 10 percent of the 
total duty increase required by paragraph (1)(B) with 
respect to the article shall apply.
(B) On and after the date that is 5 years after 
such date of enactment, 25 percent of the total duty 
increase required by paragraph (1)(B) with respect to 
the article shall apply.
(C) On and after the date that is 6 years after 
such date of enactment, 50 percent of the total duty 
increase required by paragraph (1)(B) with respect to 
the article shall apply.
(D) On and after the date that is 7 years after 
such date of enactment, 100 percent of the total duty 
increase required by paragraph (1)(B) with respect to 
the article shall apply.
(3) Information from international trade commission.--Not 
later than July 1 of each year, the Commission shall submit to 
the President an estimate of the production and consumption in 
the United States of articles described in paragraph 
(1)(A)(i)(I) for which sufficient data are available to make 
such an estimate.
(g) Authority To Further Modify Duties Specific to the People's 
Republic of China.--
(1) In general.--The President, by proclamation, may 
increase the rates of duty applicable to articles of the 
People's Republic of China to rates that are higher than the 
rates of duty described in subsection (a) and modified as 
required by subsection (b) if the President determines doing so 
is necessary to counteract the dependence of the United States 
on imports from the People's Republic of China or to penalize 
the People's Republic of China for unfair trading practices.
(2) Phase-in.--If the President proclaims an increase in a 
rate of duty under paragraph (1), the President shall provide 
for the increase to be phased-in over a period of 5 years on a 
schedule equivalent to the schedule set forth in subsection 
(d).
(3) Report.--The President may, for one or more periods of 
not more than 60 days each, waive the application of this 
subsection with respect to articles described in paragraph (1) 
if the President certifies Congress, not later than 15 days 
before such waiver takes effect, that the waiver is vital to 
the national security interests of the United States.
(h) Additional Authorities.--
(1) Authority to impose quotas to decrease reliance on 
chinese imports.--The President may establish quotas for the 
progressive elimination of reliance on any articles imported 
from the People's Republic of China.
(2) Authority to prohibit imports.--
(A) In general.--The President may prohibit the 
importation of any article from the People's Republic 
of China if the President determines that--
(i) the importation of the article poses a 
threat to the national security of the United 
States; or
(ii) the article is produced in a manner 
that--
(I) constitutes an unfair trade 
practice; or
(II) violates human rights.
(B) Regulations.--The President shall prescribe 
such regulations as may be necessary for the 
enforcement of this paragraph.
(3) Additional authority.--In addition to the other 
authorities provided by this section, the President may 
proclaim such modifications to the HTS as the President 
determines appropriate to achieve the objectives of this Act, 
including with respect to the manner of reflecting any 
modifications in the HTS.

SEC. 202. VALUATION OF MERCHANDISE IMPORTED FROM THE PEOPLE'S REPUBLIC 
OF CHINA.

Subpart A of part I of title IV of the Tariff Act of 1930 (19 
U.S.C. 1401 et seq.) is amended by adding at the end the following:

``SEC. 403. VALUATION OF MERCHANDISE IMPORTED FROM THE PEOPLE'S 
REPUBLIC OF CHINA.

``(a) In General.--Notwithstanding any other provision of law, 
merchandise imported from the People's Republic of China shall be 
appraised on the basis of the United States value of the merchandise.
``(b) Verification of United States Value.--
``(1) Submission by importers.--An importer of merchandise 
described in subsection (a) shall submit to U.S. Customs and 
Border Protection, upon entry of the merchandise, a statement 
of the United States value of the merchandise.
``(2) Verification by u.s. customs and border protection.--
U.S. Customs and Border Protection shall--
``(A) verify the information with respect to the 
United States value of merchandise submitted by an 
importer under paragraph (1); and
``(B) submit to the United States International 
Trade Commission--
``(i) a determination of whether or not the 
value submitted by the importer is accurate; 
and
``(ii) if that value is not accurate, a 
revised value for the merchandise.
``(c) United States Value Defined.--In this section, the term 
`United States value', with respect to imported merchandise, means the 
price at which the imported merchandise or similar imported merchandise 
is freely offered for sale, packed ready for delivery, in the principal 
market of the United States to all purchasers, at the time of 
importation of the imported merchandise.''.

SEC. 203. ARTICLES SPECIFIED.

The articles specified in this section are articles that--
(1) on the day before the date of the enactment of this 
Act, are--
(A) identified on the Department of Commerce's 
Draft List of Critical Supply Chains pursuant to 
Executive Order 14017 (February 24, 2021);
(B) subject to an investigation under section 301 
of the Trade Act of 1971 (19 U.S.C. 2411); or
(C) subject to an investigation under section 232 
of the Trade Expansion Act of 1962 (19 U.S.C. 1862); or
(2) subject to the discretion of the Secretary of Commerce, 
are dual-use items (as such terms are defined in section 1742 
of the Export Control Reform Act of 2018 (50 U.S.C. 4801)).

SEC. 204. REVIEW BY COMMITTEE ON FOREIGN INVESTMENT IN THE UNITED 
STATES OF GREENFIELD AND BROWNFIELD INVESTMENTS BY 
FOREIGN COUNTRIES OF CONCERN.

(a) Inclusion in Definition of Covered Transaction.--Section 
721(a)(4) of the Defense Production Act of 1950 (50 U.S.C. 4565(a)(4)) 
is amended--
(1) in subparagraph (A)--
(A) in clause (i), by striking ``; and'' and 
inserting a semicolon;
(B) in clause (ii), by striking the period at the 
end and inserting ``; and''; and
(C) by adding at the end the following:
``(iii) any transaction described in 
subparagraph (B)(vi) proposed or pending on or 
after the date of the enactment of this 
clause.'';
(2) in subparagraph (B), by adding at the end the 
following:
``(vi) Subject to subparagraphs (C) and 
(E), an investment by a foreign person that--
``(I) involves--
``(aa) the completed or 
planned purchase or lease by, 
or a concession to, the foreign 
person of private or public 
real estate in the United 
States; and
``(bb) the establishment of 
a United States business to 
operate a factory or other 
facility on that real estate; 
and
``(II) could result in control, 
including through formal or informal 
arrangements to act in concert, of that 
United States business by--
``(aa) the government of a 
foreign country of concern (as 
defined in section 10612(a) of 
the Research and Development, 
Competition, and Innovation Act 
(42 U.S.C. 19221(a)));
``(bb) a person owned or 
controlled by, or acting on 
behalf of, such a government;
``(cc) an entity in which 
such a government has, directly 
or indirectly, including 
through formal or informal 
arrangements to act in concert, 
a 5 percent or greater 
interest;
``(dd) an entity in which 
such a government has, directly 
or indirectly, the right or 
power to appoint, or approve 
the appointment of, any members 
of the board of directors, 
board of supervisors, or an 
equivalent governing body 
(including external directors 
and other individuals who 
perform the duties usually 
associated with such titles) or 
officers (including the 
president, senior vice 
president, executive vice 
president, and other 
individuals who perform duties 
normally associated with such 
titles) of any other entity 
that held, directly or 
indirectly, including through 
formal or informal arrangements 
to act in concert, a 5 percent 
or greater interest in the 
entity in the preceding 3 
years; or
``(ee) an entity in which 
any members or officers 
described in item (dd) of any 
other entity holding, directly 
or indirectly, including 
through formal or informal 
arrangements to act in concert, 
a 5 percent or greater interest 
in the entity are officials of 
such a government in the 
preceding 3 years.'';
(3) in subparagraph (C)(i), in the matter preceding 
subclause (I), by striking ``subparagraph (B)(ii)'' and 
inserting ``clause (ii) or (vi) of subparagraph (B)''; and
(4) in subparagraph (E), by striking ``clauses (ii) and 
(iii)'' and inserting ``clauses (ii), (iii), and (vi)''.
(b) Mandatory Filing of Declarations.--Section 
721(b)(1)(C)(v)(IV)(bb) of the Defense Production Act of 1950 (50 
U.S.C. 4565(b)(1)(C)(v)(IV)(bb)) is amended by adding at the end the 
following:

``(DD) Greenfield 
and brownfield 
investments by foreign 
countries of concern.--
The parties to a 
covered transaction 
described in subsection 
(a)(4)(B)(vi) shall 
submit a declaration 
described in subclause 
(I) with respect to the 
transaction.''.

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