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Bill to Prevent Tariffs on Mexico Over Immigration Passes Out of Committee

Without much fanfare, a bill that had not yet been formally introduced was amended to a reform of emergency economic powers and passed out of the Senate Homeland Security and Government Affairs Committee before the August recess. The bill, S. 2413, specifies that the International Emergency Economic Powers Act, or IEEPA, cannot be used to impose tariffs or quotas on imports.

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Sen. Tom Carper, D-Del., and Sen. Pat Toomey, R-Pa., introduced the bill with six co-sponsors: Sen. Mike Lee, R-Utah, Sen. Dianne Feinstein, D-Calif., Sen. Doug Jones, D-Ala., Sen. Kyrsten Sinema, D-Ariz., Sen. Bob Menendez, D-N.J., and Sen. Maggie Hassan, D-N.H.

Carper and Toomey, in announcing the bill's introduction on Aug. 1, said importers suffered during the 10 days in May between President Donald Trump's threat to impose a 5 percent tariff on all goods from Mexico and his decision to spare Mexican goods because of migration-related policies Mexico undertook. The president never formally invoked IEEPA, but reports at the time said that law would be the mechanism used to impose the tariffs, which were supposed to increase by 5 percentage points every month.

"IEEPA was not intended to be used as a trade tool and no president has used it to place tariffs on imported products since the legislation's enactment in 1977. The Trade Certainty Act clarifies Congress' intent by specifying that the IEEPA does not grant the executive branch the power to impose tariffs or quotas on imported goods," Toomey wrote.

A similar bill was introduced in June by Rep. Suzan DelBene, D-Wash. (see 1906270045).