Banning Antiquated Duties and Delivering Equitable American Levies (BAD DEAL) Act of 2026
- Sponsor
- Rep. Schneider, Bradley Scott [D-IL-10]
- Committees
- Ways and Means Committee (primary)
- Last action
- Aug 27, 2026
Bottom line
The BAD DEAL Act aims to eliminate an outdated presidential authority to impose retaliatory tariffs and refund all duties collected under it, potentially impacting trade relations and federal revenue.
What it actually does
This bill repeals Section 338 of the Tariff Act of 1930, which grants the President authority to impose tariffs or duties on goods from countries that discriminate against U.S. commerce. It also nullifies any existing Presidential proclamations made under this section and mandates the refund of all tariffs or duties collected pursuant to these proclamations, both retroactively and prospectively.
Proponents argue
Supporters argue that Section 338 is an antiquated and overly broad authority that can lead to arbitrary trade disputes and harm American consumers and businesses through increased costs. They contend that repealing it would promote more stable and predictable international trade relations, reduce the burden of tariffs on importers, and demonstrate a commitment to modernizing trade policy. The retroactive refund provision is seen as rectifying past harms caused by these duties.
Opponents contend
Opponents might argue that repealing Section 338 would strip the President of a crucial tool for negotiating with foreign countries and protecting U.S. economic interests against unfair trade practices. They may contend that this authority is necessary to deter trade discrimination and ensure a level playing field for American industries. Furthermore, the retroactive refund could create significant fiscal challenges and administrative complexities for the government.
The bill is exceptionally short and straightforward, allowing for quick comprehension of its core provisions.
Section 2(a)
Repeal of Trade Discrimination Authorities and Nullification of Proclamations
This provision eliminates Section 338 of the Tariff Act of 1930, which currently allows the President to impose special tariffs or duties on goods from countries found to be discriminating against U.S. commerce. It also declares that any existing Presidential orders or declarations that were issued based on this Section 338 are immediately void and have no legal effect.
Supporters argue
Supporters argue this repeal removes an outdated and potentially misused presidential power that can lead to unpredictable trade policies and retaliatory measures, fostering a more stable global trade environment.
Critics contend
Critics might argue that this provision weakens the President's ability to respond to unfair trade practices by foreign nations, potentially leaving U.S. businesses vulnerable to discrimination without a strong deterrent.
Tradeoffs
The tension lies between granting the Executive broad discretionary power to respond to trade discrimination and ensuring predictable, rules-based international trade.
Section 2(b)
Retroactive Refund of Collected Tariffs and Duties
This provision requires the President to take all necessary steps to refund any tariffs or other duties that were imposed and collected under the authority of Section 338 of the Tariff Act of 1930. This refund applies to duties collected both before and after the bill's enactment date, making the repeal retroactively effective for financial purposes.