WASHINGTON, D.C.— U.S. Senator Peter Welch (D-Vt.), a member of the Senate Finance Committee, U.S. Senator Kirsten Gillibrand (D-NY), and U.S. Representative Brad Schneider (D-IL-10), a member of the House Ways and Means Trade Subcommittee, today announced they will introduce the Banning Antiquated Duties and Delivering Equitable American Levies (BAD DEAL) Act to repeal Section 338 of the Tariff Act of 1930, and refund all duties paid under this authority.
Over the weekend, trade talks between the United States and Canada broke down, resulting in the Trump Administration imposing 50% tariffs on Canada under Section 338, a never-before-applied section of the Smoot-Hawley Tariff Act. In response, Canada is pledging dollar-for-dollar retaliatory tariffs slated to come into effect after Labor Day.
“No good will come of this trade war with Canada. The only thing these tariffs will create is economic pain on both sides of the border, especially for Vermont and the other 33 states that rely on Canada as their largest trading partner,” said Sen. Welch. “Imposing on-again, off-again tariffs is the opposite of how we should treat our close friends and longtime allies, but it’s endemic to how the Trump Administration operates. I’m proud to join my colleagues in leading the BAD DEAL Act to repeal these reckless tariffs and reclaim Congress’ constitutional role in setting our trade policy.”
“President Trump and Republicans promised to lower costs and make life more affordable, but they’ve used their total power in Washington to make life more expensive than ever,” said Sen. Gillibrand. “Let’s be clear: the latest tariffs against Canada are a bad deal for New York families. I’m proud to introduce this legislation to end these costly tariffs and refund Americans. It’s past time for President Trump to stop the political games, get back to the negotiation table, and make a deal that lowers costs and strengthens our economy.”
“Every American deserves a fair shot to get ahead, and Trump’s capricious and costly tariffs are making it exceedingly difficult to simply make ends meet,” said Rep. Schneider. “President Trump’s brazen and counterproductive trade war only damages the long-standing, mutually beneficial relationship with our neighbor, and second largest trading partner, Canada. This is a bad deal! It’s a bad deal for American families, and it’s a bad deal for American small businesses. I’m proud to work with my colleagues to introduce the aptly named BAD DEAL Act to repeal this outdated tariff authority AND refund the tariff duties paid. We will continue fighting to rein in Trump’s costly tariffs and reassert Congress’ authority before his on-again, off-again trade policy damages our international relationships for years to come.”
One in four businesses in Vermont relies on trade with Canada. In 2024 alone, trade with Canada accounted for 35% of Vermont’s exports, 67% of its imports, and 56% of total trade. Vermont buys more goods from Canada than the next nine largest foreign markets combined. In 2024, Vermont exported $181 million just in food and agricultural products to Canada.
Senator Welch cosponsors the bipartisan Trade Review Act, which seeks to restore Congress’ constitutional role in trade policy. He also led the Creating Access to Necessary American-Canadian Duty Adjustments (CANADA) Act, legislation that would exempt United States-owned small businesses from tariffs imposed on Canada under IEEPA authorities.
View the bill text here.
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