SEC. 2. FINDINGS OF CONGRESS. 
Congress makes the following findings: 
(1) Since 1997, the United States current ac-
count deficit, the broadest measure of United States 
international trade, has grown substantially, both 
absolutely and relative to gross domestic product 
(GDP), increasing from $140,400,000,000 in 1997 
(1.7 percent of GDP) to $791,000,000,000 in 2005 
(6.3 percent of GDP). 
(2) Strong manufacturing and agricultural sec-
tors are important to nurturing and sustaining the 
health and security of the Nation’s economy. The 
persistent current account deficit weakens United 
States manufacturing and agriculture and causes 
the loss of United States jobs. It can be estimated 
that the 2005 merchandise trade deficit cost the 
United States up to 15,000,000 jobs. 
(3) The direction and trend of the current ac-
count deficit is unsustainable in the long run and 
needs immediate corrective action. 
(4) It is critical to the Nation’s economic future 
that the current account deficit be addressed by 
adopting statutory changes that will eliminate some 
of the causes of the trade deficit and will begin to 
move the Nation to a positive trade balance. 
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SEC. 3. MANDATORY PRESIDENTIAL ACTION WHENEVER 
THE UNITED STATES CURRENT ACCOUNT 
DEFICIT 
EXCEEDS 
PERCENT 
OF 
THE 
UNITED STATES GROSS DOMESTIC PRODUCT. 
Section 122 of the Trade Act of 1974 (19 U.S.C. 
2132) is amended— 
(1) by redesignating subsections (c) through (h) 
as (d) through (i), respectively; and 
(2) by inserting after subsection (b) the fol-
lowing new subsection (c): 
‘‘(c) MANDATORY PRESIDENTIAL PROCLAMATION OF 
TEMPORARY
IMPORT
SURCHARGE
WHENEVER
THE 
UNITED STATES CURRENT ACCOUNT DEFICIT EXCEEDS 
2 PERCENT OF THE GROSS DOMESTIC PRODUCT.— 
‘‘(1) IN GENERAL.—Notwithstanding the provi-
sions of subsections (a) and (b), whenever there is 
a United States current account deficit that exceeds 
2 percent of the gross domestic product, then— 
‘‘(A) for purposes of subsection (a), the 
President shall determine that fundamental 
international payments problems do exist that 
require special import measures to restrict im-
ports; and 
‘‘(B) within 30 days after making that de-
termination, the President shall proclaim, for 
the period described in paragraph (2), a tem-
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porary import surcharge under this subsection 
in the form of duties (in addition to those al-
ready imposed, if any) on articles imported into 
the United States. 
‘‘(2) PERIOD OF SURCHARGE.—The period of 
the surcharge proclaimed under this subsection is 
the period beginning on the date on which the sur-
charge is proclaimed and ending on the date on 
which there is not a United States current account 
deficit, or there is a United States current account 
deficit that does not exceed 1 percent of the gross 
domestic product. 
‘‘(3) AMOUNT OF SURCHARGE.— 
‘‘(A) MINIMUM.—The amount of the sur-
charge proclaimed under this subsection shall 
be not less than 20 percent ad valorem. 
‘‘(B) ADJUSTMENT TO ENSURE PERIOD OF 
NOT MORE THAN 24 MONTHS.—Subject to sub-
paragraph (A), the amount of the surcharge 
shall be adequate to ensure that the period in 
which the surcharge applies (as described in 
paragraph (2)) is not more than 24 months. 
Whenever the President determines that the 
amount of the surcharge is inadequate to en-
sure that the period in which the surcharge ap-
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plies is not more than 24 months, the President 
shall increase the amount by at least 1 percent. 
‘‘(4) DATA
USED
IN
MAKING
DETERMINA-
TIONS.—Each determination under this subsection 
shall be made using the most recently available in-
formation for a 1-year period compiled by the Bu-
reau of Economic Analysis of the Department of 
Commerce. 
‘‘(5) EXCEPTIONS.— 
‘‘(A) COUNTRY EXEMPTIONS.—Subsection 
(e)(2) applies to a surcharge proclaimed under 
this subsection to the same extent that it ap-
plies to an import restricting action proclaimed 
pursuant to subsection (a). 
‘‘(B) PRODUCT
EXCEPTIONS.—Subsection 
(f) applies to a surcharge proclaimed under this 
subsection to the same extent that it applies to 
an import restricting action proclaimed pursu-
ant to subsection (a).’’. 
Æ 
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