Trade Deficit Elimination Act of 2026

The Trade Deficit Elimination Act of 2026 directs the United States Trade Representative to annually identify countries with which the U.S. has a bilateral deficit in goods trade and designate them as "trade deficit economies." For these designated partners, the bill authorizes the imposition of additional import duties specifically calculated to eliminate the trade imbalance, subject to presidential direction and consultation with congressional committees. The legislation allows for exemptions on goods that are critical to national security or unavailable domestically at reasonable prices. Additionally, it empowers the Trade Representative to negotiate bilateral agreements requiring partner nations to increase purchases of U.S. goods or reduce their exports to the United States.