H.R. 505: To impose additional duties on imports of goods into the United States.

The bill titled H.R. 505 aims to impose additional duties on imported goods entering the United States. Here is a breakdown of what the bill entails:

Imposition of Duties

The President is required to impose an additional duty of:

• 10% ad valorem: This means that for each imported good, a duty of 10% of the value of the good will be applied starting from the year the bill is enacted.

Adjustments Based on Trade Balance

In subsequent years, the duty may be adjusted based on the United States' trade balance:

• If the U.S. has a trade deficit in the previous year, the duty will increase by an additional 5% ad valorem.
• If the U.S. has a balance or surplus in trade, the duty will decrease by 5% ad valorem, but the duty cannot drop below $0.

Additional Duties Context

The duties imposed by this bill will be in addition to any existing duties already applied to those goods under current law.

Overall Impact

This legislation is designed to adjust duty rates annually based on the trade performance of the United States in the previous year, aiming to possibly control trade deficits by making imports more expensive when the U.S. is importing more than it exports.

Relevant Companies

• AMZN (Amazon.com, Inc.): As a large importer of various consumer goods, this company may face increased costs with the higher duties on imported products.
• WMT (Walmart Inc.): Similar to Amazon, Walmart imports a significant amount of merchandise, which could lead to increased prices for consumers if duties rise.
• BBY (Best Buy Co., Inc.): Best Buy, as a retailer of electronics, may see an increase in costs for imported goods, potentially affecting their pricing strategy.