U.S. Sen. Rick Scott (R-FL) introduced legislation to grant federal trade authorities expanded power to adjust tariffs on countries that maintain bilateral trade imbalances with the United States.
The bill, titled the Trade Deficit Elimination Act of 2026, was cosponsored by Sens. Kevin Cramer (R-ND) and Tim Sheehy (R-MT). It creates a formal congressional framework intended to codify trade policies championed by President Donald Trump aimed at eliminating deficits in the trade of goods.
Under the proposed legislation, the U.S. Trade Representative (USTR) would be required to evaluate bilateral trade data from the Bureau of Economic Analysis or other relevant federal agencies by April 1 of each year. The USTR would then designate and publish a list in the Federal Register of all “trade deficit economies”—defined as trading partners with which the U.S. runs a bilateral trade deficit in goods.
Within 15 days of publishing the annual list, the USTR, acting under specific direction from the president, would hold the authority to impose, increase, decrease, or suspend import duties on goods coming from those designated countries. These duties would be applied in addition to any existing tariffs already required by law.
The legislation includes provisions allowing the executive branch to exempt specific goods from new tariffs. Exemptions apply to raw materials, national defense items, or critical goods if additional duties would cause severe supply disruptions, as well as products that cannot be grown, produced, or sourced elsewhere in sufficient quantities or at reasonable prices.
Additionally, the bill authorizes the USTR to enter into bilateral negotiations with trade deficit economies. To address the imbalances, potential trade agreements under the act would require partner countries to reform unfair trade practices, increase purchases of American products, or voluntarily restrain exports to the U.S.
Proponents of the measure framed the bill as a necessary step to protect domestic industries and workers from uneven trade conditions.
“Previous generations of Americans gave us an economic superpower; it’s our job to preserve what they built and to leave America better than we found it for our children and grandchildren,” Scott said in a statement. “That means we can’t let other countries rip us off. In recent years, our trading partners have taken advantage of access to American markets while unfairly crowding American products out of their own countries. Decline is a choice, and President Trump is taking action to restore American prosperity. I’m proud to introduce this legislation to give President Trump the tools he needs to level the playing field, protect American workers, and put America First.”
Cramer emphasized the bill’s focus on supporting key domestic sectors.
“Trade should be fair, not one-sided, and it’s refreshing to have a president who isn’t afraid to hold our trading partners accountable,” Cramer said. “This bill gives President Trump and Ambassador Greer tools to address trade deficits, keep critical supply chains intact, and achieve better trade agreements for American farmers, ranchers, manufacturers, and workers.”
Before modifying or implementing any duties under the act, the USTR is required to consult with the Senate Finance Committee and the House Ways and Means Committee. The text specifies that the limited delegation of authority strictly restricts executive actions to the procedures and standards set within the legislation.
The measure was read twice and referred to committee for further consideration.
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