Investing.com -- As markets plunged on Thursday following President Trump's sweeping reciprocal tariff announcement, two senior members of the Senate Finance Committee, Republican Senator Chuck Grassley and Democrat Senator Maria Cantwell, introduced a bipartisan bill that would curtail the President's authority to impose tariffs unilaterally.
The proposed legislation, named the "Trade Review Act of 2025," is designed to restore congressional oversight over new tariffs, requiring President Donald Trump to secure congressional approval for any new trade levies within 60 days of their announcement.
The bill mandates that the President notify Congress of any new tariffs within 48 hours of their imposition, along with a detailed explanation and an analysis of how they might affect U.S. businesses and consumers. If Congress does not pass a joint resolution of approval within the 60-day window, the new tariffs would automatically expire.
This legislative move mirrors the War Powers Resolution of 1973 in its approach to reestablishing checks and balances, specifically in the realm of trade. It aims to prevent the President from implementing tariffs without the express consent of Congress. The bill expressly excludes antidumping and countervailing duties, which are covered under different trade regulations.
The "Trade Review Act of 2025" outlines a clear process for the introduction and handling of joint resolutions of approval or disapproval in Congress, setting forth expedited procedures for their consideration. It also reaffirms the authority of both the Senate and the House of Representatives to change the rules governing the resolution process as they see fit.
The bill has been read twice and referred to the Committee on Finance for further deliberation. If enacted, it would significantly alter the dynamic of trade policy-making, re-engaging Congress in decisions that have far-reaching implications for the economy and international relations.
It is unclear if the bill will get any traction. However, several Trump-supporting Senators, including Rand Paul, have come out against the tariffs.
Paul warned that when McKinley imposed tariffs in 1890, Republicans lost 50 percent of their seats. When Smoot-Hawley put their tariffs in the early 1930s, they lost the House and Senate for 60 years. “So not only bad economically, they are bad politically," Paul commented.
