HR 7822
Tariff Relief for Consumers Act
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Bill overview
The Tariff Relief for Consumers Act aims to return tariffs imposed by the Trump administration to consumers. It directs the Treasury Secretary to create a program where importers who paid these tariffs can receive refunds, which they must then pass on to customers in the form of lower prices or rebates. The bill prioritizes refunds for importers who demonstrably lower prices for essential consumer goods, and sets a deadline for implementing the refund program.
Key provisions
- Establishes a program for importers to receive refunds for tariffs imposed under the International Emergency Economic Powers Act.
- Requires importers to demonstrate steps to lower consumer prices proportionally to the refund received.
- Prioritizes refunds to importers who reduce prices for essential consumer goods.
- Defines ‘essential consumer goods’ including infant formula, diapers, hygiene products, and basic clothing.
- Sets a 180-day deadline for issuing refunds.
- Imposes restrictions on stock buybacks and dividends until price reductions are implemented.
- Defines a covered importer based on tariff payments and parent company revenue.
- Requires importers to demonstrate a mechanism for prior consumers to receive rebates if they don't trade in essential consumer goods.
Who is affected
- Consumers
- Importers
- Businesses
- The Treasury Department
- U.S. Customs and Border Protection
Notable changes
Sponsors
Official sponsors from legislative records.
Primary sponsor
Cosponsors
Eleanor Holmes [D-DC-At Large] Norton
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119th CONGRESS — 2d Session
H. R. 7822
IN THE HOUSE OF REPRESENTATIVES
A BILL
To direct the Secretary of the Treasury to promulgate regulations for the payment of refunds for tariffs invalidly assessed using authorities provided by the International Emergency Economic Powers Act to entities that demonstrably lower consumer prices, and for other purposes.
This Act may be cited as the Tariff Relief for Consumers Act
.
Congress finds the following:
President Trump’s tariffs imposed under the International Emergency Economic Powers Act (50 U.S.C. 1701 et seq.) (IEEPA) in many sectors raised prices for consumers and imposed additional costs on businesses.
Research has shown that consumers have shouldered up to 96 percent of the burden of the IEEPA tariffs, meaning companies have passed the increased costs in their supply chains due to tariffs on to consumers in the form of higher prices.
Given the Supreme Court’s holding in Learning Resources, Inc. v. Trump that the tariffs imposed by President Trump under IEEPA are unlawful, the Administration must ensure that consumers, not just large corporations, are the ones who receive relief from the costs of these tariffs.
Therefore, the Secretary of the Treasury, the Commissioner of U.S. Customs and Border Protection, and the head of any other relevant Federal agency should rapidly draft and implement rules to ensure tariff refunds are returned directly to consumers in the form of price reductions or rebates.
In applying for a refund under the regulations promulgated pursuant to this section, a covered importer shall—
demonstrate, to the extent practicable—
that such reductions in prices are targeted towards essential consumer goods;
to the extent that the covered importer does not trade in essential consumer goods, that the covered importer has implemented other means by which prior customers of the importer can receive rebates or refunds on prospective purchases commensurate with the amount refunded; or
that the covered importer did not increase customer prices due to the imposition of the tariffs described in subsection (a) and instead absorbed that cost directly.
The Secretary shall prioritize the payment of refunds described in subsection (a) to—
covered importers that credibly demonstrate, as described in subsection (b)(2)(A), that in anticipation of receiving such refunds the covered importer has reduced prices for essential consumer goods; and
In carrying out the regulations promulgated pursuant to this section, the Secretary of the Treasury shall consult as appropriate with the heads of other relevant Federal departments and agencies.
The Secretary of the Treasury, in coordination with the heads of other relevant Federal departments and agencies, as appropriate, shall take such steps as may be necessary to ensure that all tariffs and other duties described in subsection (a) are refunded not later than 180 days after the date of the enactment of this Act, except to the extent that covered importers are unable to meet the applicable requirements of the program established by such subsection.
Nothing in this subsection may be construed to prohibit or limit any importer that paid any amount in tariffs or other duties described in subsection (a) from voluntarily lowering prices in the manner described in subsection (b)(1).
In this Act:
The term essential consumer goods means—
diapers and essential infant clothing and safety products;
hygiene and health care products;
basic clothing items, including shoes;
children’s toys and sporting goods with a manufacturer’s suggested retail price of less than $50; and
such other consumer goods as the Secretary of the Treasury determines appropriate.