Congress Demands Veto Power Over Presidential Tariffs: New Bill Ends Unilateral Trade Wars

If you’re running a business that imports components or just buying consumer goods, you know that sudden tariffs can feel like a random tax hike hitting your budget. The Reclaiming Congressional Trade Authority Act of 2025 is designed to limit the President's and the U.S. Trade Representative's (USTR) ability to drop those tariffs on us without a serious review first.

The End of Solo Tariff Decisions

Right now, the President has significant power to impose new import taxes—duties—especially if they claim it’s for national security reasons (often called Section 232 duties). This bill drastically changes that by requiring Congress to sign off. Under Section 2, if the President wants to impose a new national security duty, they can’t just announce it; they must first send the proposal to the International Trade Commission (ITC) for an economic review, consult with both the Department of Defense and four key Congressional committees (Finance, Ways and Means, Armed Services), and then wait for Congress to pass a joint resolution of approval.

Think of it this way: the President used to have the keys to the tariff car and could drive it wherever they wanted. Now, they have to stop, get a map from the ITC, get permission from Congress, and get a co-pilot from the Defense Secretary before they can even put it in drive. This is a massive shift of power from the Executive Branch back to the Legislative Branch, meaning fewer surprise tariffs that rattle supply chains and more predictable trade policy after careful economic assessment.

The 120-Day Emergency Brake

Of course, sometimes things are truly urgent. The bill acknowledges this by including an Exception for Urgent Action. If there is an immediate national emergency, a threat to life, or a direct national security threat, the President can hit the emergency brake and impose duties immediately, but only for a maximum of 120 calendar days. This window is meant to give the President time to act while Congress works through the full approval process. However, the definition of "urgent national security threat" is broad, which means this 120-day window could become a loophole if a President decides to use it frequently to bypass the approval process temporarily.

The USTR Gets a Time-Out, Too

It’s not just the President; the U.S. Trade Representative (USTR) also faces new restrictions when imposing duties under Section 301 (often used against unfair trade practices). Section 3 requires the USTR to follow a detailed process before any new duties can be implemented. This includes submitting the proposal to the ITC for an economic impact analysis, consulting with relevant Congressional committees (including the Agriculture committees if farm products are involved), and then entering a 60-day waiting period.

During this 60-day review, Congress can effectively veto the USTR’s proposed action by passing a disapproval resolution. For the small business owner, this means that trade actions designed to punish foreign competitors will take longer to implement, but they are far less likely to be blocked by Congress because of unintended negative economic consequences here at home. While businesses relying on fast, targeted trade responses might see delays, the increased review process offers more stability and predictability for industries reliant on global trade.