Following 50% Tariffs on Canada, Rep. Panetta Joins Introduction of Bill to Repeal Section 338, Refund Tariffs

Monterey, CA - United States Representative Jimmy Panetta (CA-19) joined Rep. Brad Schneider (IL-10) and Senators Kirsten Gillibrand (D-NY) and Peter Welch (D-VT) in introducing the Banning Antiquated Duties and Delivering Equitable American Levies (BAD DEAL) Act to repeal Section 338 of the Tariff Act of 1930 and refund all duties paid under this authority. Over the weekend, trade talks between the United States and Canada broke down, resulting in the United States' imposition of 50% tariffs on roughly $20 billion in Canadian goods under Section 338. In response, Canada is pledging dollar-for-dollar retaliatory tariffs slated to come into effect after Labor Day.

The United States and Canada share one of the world's largest and most integrated trading relationships. In 2025, bilateral trade in goods and services totaled approximately $872 billion, including nearly $426 billion in U.S. exports. Canada is the United States' second-largest trading partner and the top merchandise export market for 32 states. These new tariffs threaten to disrupt cross-border supply chains, raise costs for American families and businesses, and invite further retaliation against U.S. industries.

"This Administration's senseless tariff policies and self-defeating trade wars have already hurt American businesses and raised costs for working families. Now, the President's 40-year fixation on tariffs is producing yet another bad deal for the American people by imposing massive new duties on Canada, our second-largest trading partner and a longstanding ally," said Rep. Panetta. "I'm proud to join Rep. Schneider and other Ways and Means colleagues in introducing the BAD DEAL Act to repeal this antiquated authority under Section 338 and refund the duties American businesses have already been forced to pay. It is long past time for Congress to reclaim its constitutional authority over trade and put an end to this Administration's destructive tariff regime."

"Every American deserves a fair shot to get ahead, and Trump's capricious and costly tariffs are making it exceedingly difficult to simply make ends meet," said Rep. Schneider. "President Trump's brazen and counterproductive trade war only damages the long-standing, mutually beneficial relationship with our neighbor, and second largest trading partner, Canada. This is a bad deal! It's a bad deal for American families, and it's a bad deal for American small businesses. I'm proud to work with my colleagues to introduce the aptly named BAD DEAL Act to repeal this outdated tariff authority AND refund the tariff duties paid. We will continue fighting to rein in Trump's costly tariffs and reassert Congress' authority before his on-again, off-again trade policy damages our international relationships for years to come."

In addition to Rep. Panetta, cosponsors of the BAD DEAL Act include Reps. Don Beyer (VA-08), Suzan DelBene (WA-01), Tim Kennedy (NY-26), Terri Sewell (AL-07), Greg Stanton (AZ-04), and Suhas Subramanyam (VA-10).

In 2025, Rep. Panetta joined Rep. Schneider in introducing the Repealing Outdated and Unilateral Tariff Authorities Act, which would repeal Section 338 of the Tariff Act of 1930.

Full text of the bill is available here.

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