MONTEREY >> Ahead of the announcement of President Trump’s widespread tariffs across the globe last week, Rep. Jimmy Panetta, D-Carmel Valley, introduced the Reclaim Trade Powers Act, legislation he authored, which would modernize outdated trade authorities and ensure that Congress, not the Administration, has the final say when it comes to imposing broad tariffs.

The Reclaim Trade Powers Act would strike Section 122 of the Trade Act of 1974, which currently allows the President to impose sweeping 15% tariffs on all imports in the event of a so-called balance of payments crisis, says Panetta’s office.

This provision, originally intended to address a scenario in which a nation’s currency is backed by a commodity or foreign currency, is no longer applicable since the United States is no longer on the gold standard.

In recent years, the Trump Administration misused the term “balance of payments issue” to justify imposing tariffs based on trade imbalances, rather than genuine economic crises. This misuse underscores the need for Congress to reassert its Constitutional role in trade policy, according to Panetta’s office.

“The balance of payments authority has been mischaracterized and misused to justify broad, indiscriminate tariffs that bypass Congressional oversight,” said Panetta in a press release.

“The Reclaim Trade Powers Act would close that loophole and help establish a trade policy that reflects modern economic realities rather than outdated statutes. This legislation would protect our economy from unnecessary and harmful tariffs, ensure major trade decisions are not made solely by executive branch and restore Congressional authority over trade.”

By repealing Section 122 of the Trade Act of 1974, the Reclaim Trade Powers Act would modernize U.S. tariff authorities to reflect current economic conditions, reclaim Congressional authority over trade powers and restrict the Administration from unilaterally imposing broad, across-the-board tariffs without Congressional approval according to Panetta’s office.

The Reclaim Trade Powers Act is co-sponsored by Reps. Suzan DelBene (WA-01), Don Beyer (VA-08), Brad Schneider (IL-10) and Terri Sewell (AL-07).

When Trump imposed the tariffs last week on more than 100 trading partners, including key U.S. allies, Panetta, a Member of the House Subcommittee on Trade, released a statement.

“President Trump’s tariffs will hurt hard-working Americans and abdicate the long-time role of America as the leader of the global trade system. By imposing these broad tariffs, the highest rates since World War II, President Trump is ignoring the potential economic consequences of shrinking our international trade and slowing growth for domestic businesses, workers and consumers,” said Panetta. “Instead of creating jobs and strengthening our industries, President Trump’s tariffs will most likely raise prices, disrupt supply chains and invite costly retaliation from our allies and trading partners.”

President Trump’s recent tariffs have led to significant economic consequences including inducing market volatility as investor confidence has been shaken, leading to significant losses in stock markets, strained relationships with key trading partners and prompting retaliatory measures that further impact U.S. exports.

Retaliatory tariffs have led to a reduction of more than $27 billion in agricultural exports, according to Fortune magazine, prompting discussions of federal aid to support affected farmers.

Due to tariffs, farmers face higher prices for essential supplies, says Successful Farming magazine, impacting competitiveness and potentially causing long-term market share losses.

Consumers are experiencing higher costs on everyday items, including groceries and clothing, as tariffs increase import prices.

“The impact of President Trump’s tariffs will be felt locally as our agriculture, technology, manufacturing and small businesses rely on stable trade relationships and foreign markets,” said Panetta in a release. “President Trump’s tariffs will not only shrink those markets but also will invite retaliation and reduce our competitiveness. As America retreats from global trade relationships, other countries, including China, will happily step forward and fill the void with more bilateral trade deals and regional agreements to suit their own ends, potentially leading to an entirely new global trade structure without the United States.”

On Monday, China responded to the U.S. tariffs with several significant measures including announcing a 34% tariff on all U.S. goods, mirroring the tariff rate that the U.S. had imposed on Chinese imports, according to AP News, increasing export controls on rare earth minerals, which are crucial components in various high-tech industries, and suspending imports of specific American agricultural products, affecting U.S. farmers and the agricultural sector.

Trump announced that if China did not withdraw its 34% retaliatory tariffs on U.S. goods by Tuesday, the United States would impose an additional 50% tariff on Chinese imports, effective Wednesday.