The Secure Trade Act Slaps a New 10% Tax on All Imports and Hikes China Tariffs Up to 100%

The newly proposed Secure Trade Act is a massive overhaul of U.S. trade policy, starting with a blanket tax increase on nearly everything brought into the country. Under Title I, a new 10 percent duty will be added to the value of all imported goods, effective the first full calendar year after the law passes. This isn't a replacement for existing tariffs; it’s an extra charge tacked on top of whatever duties are already in place. While the President can lower this 10 percent rate for specific sectors after consulting Congress, the immediate impact for anyone who buys, sells, or uses imported goods—which is pretty much everyone—is a price hike.

The Universal Cost of the 10% Surcharge

Let’s be real: when the government adds a 10 percent tax on imports, that cost doesn't stay with the importer. It gets passed down the line. If you’re a small business owner who imports specialized parts for your manufacturing operation, those parts just got 10 percent more expensive. If you’re a consumer buying anything from electronics to clothing to coffee, expect the retail price to creep up. This isn't just about consumer goods; it affects raw materials and intermediate goods, potentially raising the cost of domestic production too. The goal is to fund the government and maybe encourage domestic sourcing, but the immediate effect is a new cost burden on U.S. buyers.

The China Pivot: Up to 100% Duties on Strategic Goods

Title II focuses intensely on trade with China, granting the President sweeping authority to reshape that relationship through tariffs. The core change (Sec. 201) is that duties on Chinese goods will be significantly increased, often to a minimum of 35% ad valorem. For what the bill calls “specified articles”—which includes items on the Commerce Department’s critical supply chain list, or items the Secretary of Commerce deems “dual-use” (civilian and military)—the tariffs get brutal. If the existing tax rate on those strategic goods is less than 100% ad valorem, it gets immediately bumped up to 100% ad valorem.

This isn't a quick change, though; the President has to phase in these massive increases over five years, starting with a 10% increase after 180 days and hitting the full 100% hike five years out. The President also gets the power to set special tariff-rate quotas for goods that are only imported from China, effectively limiting the amount that can come in at a lower rate before the 100% duty kicks in. Essentially, if you rely on a Chinese-made component that's deemed 'strategic'—say, a specific rare earth magnet or solar panel part—the price could double over the next five years, forcing a costly and complicated shift in your supply chain.

New Rules for Valuing Chinese Imports

Beyond the tariff hikes, the bill introduces a complex new compliance headache for importers: the 'United States value' rule (Sec. 202). Currently, imports are typically valued based on the price paid to the foreign seller. Under this bill, Chinese imports must now be valued based on the price at which the same or similar product is freely sold in the main U.S. market. Importers must now file a written statement declaring this value, and Customs and Border Protection (CBP) will verify it. This is a massive shift, requiring importers to track U.S. retail prices rather than just their own purchase costs, creating significant administrative burden and opening the door to more disputes with CBP over valuation.

Expanding Government Watch Over Real Estate Deals

Finally, the Act expands the mandatory review powers of the Committee on Foreign Investment in the United States (CFIUS) over certain real estate transactions (Sec. 204). If a foreign person from a “country of concern” is buying or leasing U.S. real estate to set up a new business—a “greenfield” or “brownfield” investment—and there’s a chance the foreign government could gain control, the parties must file a declaration with CFIUS. This is a mandatory check on foreign government-linked investments in U.S. land and facilities, signaling a tightening of scrutiny on how certain foreign entities acquire physical assets here. If you’re a developer or a regional economic council trying to attract foreign investment, this adds a mandatory regulatory step that could complicate or stall major projects.