WASHINGTON, D.C. — U.S. Senator Peter Welch (D-Vt.), a member of the Senate Finance Committee, today joined U.S. Senators Tim Kaine (D-Va.) and Reverend Raphael Warnock (D-Ga.) in introducing the Reclaim Trade Powers Act, bicameral legislation that would end President Donald Trump’s indiscriminate 10% tariffs on most goods by repealing Section 122 of the Trade Act of 1974.
After the Supreme Court ruled last month that President Trump’s tariffs under the International Economic Emergency Powers Act (IEEPA) were illegal, President Trump applied tariffs of 10% on goods, citing Section 122 and continuing to circumvent Congress’ constitutional authority over trade. Trump has promised to raise the broad-based tariffs to 15%. This is the first time Section 122 authority has been invoked in its 50-year history.
“The Supreme Court’s 6-3 decision striking down President Trump’s illegal tariffs should’ve been a wake-up call to the president about the destruction his economic policies are causing. But instead, he’s doubling down and threatening new sweeping tariffs by invoking an outdated authority,” said Senator Welch. “We’re fighting to make sure President Trump can’t use this antiquated authority to worsen the affordability crisis facing families across the country.”
“Everywhere I go across Virginia, I hear about how costs are too high. Yet, instead of focusing on addressing Americans’ concerns, President Trump has doubled down on imposing universal tariffs that are raising prices—relying on an outdated authority that has never been used in history,” said Senator Kaine. “I’m introducing this legislation to repeal that outdated authority and provide some relief to the American people from these cost-raising taxes.”
“President Trump’s tariff policies are wrecking our economy and American families are the ones paying the price,” said Rev. Senator Warnock. “This administration promised to protect our workers and bring back manufacturing jobs. Instead, we’re seeing higher costs, job losses, and more uncertainty. This commonsense legislation will repeal an out-of-date authority that the President is using to raise prices on Americans. I’m proud to work with Senator Kaine to hold this president in check and put a stop to this madness.”
President Trump’s tariffs have increased costs for American consumers and businesses. Researchers at the Federal Reserve Bank of New York estimate that 90% of the costs for the president’s tariffs fall on Americans, while the Congressional Budget Office puts that rate as high as 95%. If made permanent, the new tariffs would increase the cost of Trump’s tariffs on Americans to an average of more than $1,000 per household, per the nonpartisan Yale Budget Lab.
Section 122 was drafted and passed at a time when U.S. currency policy was centered around the convertibility of U.S. dollars, or dollar reserves to gold at fixed exchange rates. It was intended for use during times when foreign central banks could potentially rapidly drain U.S. gold reserves and create a dollar crisis. However, more than 50 years ago, the U.S. moved to a floating exchange rate system, making the problems Section 122 was intended to address functionally moot.
Joining Senators Welch, Kaine, and Warnock on the legislation are Sens. Ron Wyden (D-Ore.), Angus King (I-Maine), Chris Coons (D-Del.), Mark Warner (D-Va.), Chris Van Hollen (D-Md.), Amy Klobuchar (D-Minn.), Jacky Rosen (D-Nev.), Angela Alsobrooks (D-Md.), Martin Heinrich (D-N.M.), and Patty Murray (D-Wash.). Companion legislation was introduced in the U.S. House of Representatives by Representative Jimmy Panneta (D-CA-19).
Read and download the full text of the Reclaim Trade Powers Act.
Senator Welch welcomed the Supreme Court’s 6-3 ruling to strike down President Trump’s reckless, global tariffs, which were imposed illegally under the IEEPA. The Senator is a proud original cosponsor of the bipartisan Trade Review Act, legislation to reaffirm Congress’ key role in setting and approving U.S. trade policy. Senator Welch also led colleagues in pressing President Trump on his failure to plan to deliver refunds to the American people. The Senator also supported bipartisan legislation to restrict the executive branch’s authority to impose tariffs through the IEEPA for Trump’s Brazil tariffs, Canada tariffs, and April 2nd Global tariffs; all of these measures passed the Senate with bipartisan support last year.
The Senator has hosted roundtables and events in Williston, Stowe, Newport, St. Albans, Manchester, South Burlington, and virtually to hear concerns and first-hand stories from Vermont and Canadian businesses impacted by the trade war.
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