Authority to take certain actions relating to reciprocal trade

(a) In general If the President determines that— (1) the rate of duty imposed by a foreign country with respect to a particular good, when imported from the United States, is significantly higher than the rate of duty imposed by the United States on that good, when imported from that country, or (2) the nontariff barriers applied by a foreign country with respect to a particular good, when imported from the United States, impose significantly higher burdens, alone or in combination with any tariffs imposed by that country on that good, than the burdens of the nontariff barriers applied by the United States with respect to that good, alone or in combination with any tariffs imposed by the United States on that good, when imported from that country, the President may take one or more of the actions authorized under subsection (b). (b) Actions authorized The actions authorized under this subsection are the following: (1) To negotiate and seek to enter into an agreement with the foreign country that commits the country to reduce the rate of duty or reduce or eliminate nontariff barriers on the good that is the subject of the determination under subsection (a). (2) To impose a rate of duty on imports of the good that is equal to— (A) the rate of duty imposed by the foreign country with respect to the good, in the case of a determination described in subsection (a)(1); or (B) the effective rate of duty of the nontariff barriers applied by the foreign country with respect to the good, alone or in combination with any tariffs imposed by that country on that good, in the case of a determination described in subsection (a)(2). (c) Factors In taking an action authorized under subsection (b), the President shall consider the following factors: (1) The tariff classification of the good by the United States and the tariff classification of the good by the foreign country. (2) The rate of duty applied by the United States with respect to the good and the rate of duty applied by the foreign country with respect to the good. (3) The physical characteristics of the good. (4) The end uses and existence of a competitive relationship between the good— (A) as exported from the United States to the foreign country; and (B) as imported from the country to the United States. (5) The level of exports of the good by the country to the United States and to other countries. (6) In the case of a determination described in subsection (a)(1), the extent to which the rate of duty applied by the foreign country with respect to the good is impeding or distorting trade. (7) In the case of a determination described in subsection (a)(2)— (A) the extent of the nontariff barriers applied by the foreign country with respect to the good and the extent of the nontariff barriers applied by the United States with respect to the good; (B) the extent to which the nontariff barriers applied by the country with respect to the good, alone or in combination with any tariffs imposed by that country on that good, are impeding or distorting trade; (C) the identified purpose of the nontariff barriers applied by the country with respect to the good, if any, and the extent to which the nontariff barriers are more restrictive than necessary to meet that purpose; and (D) the degree of transparency of the process by which the country adopted the nontariff barriers. (8) Other factors, as the President determines appropriate. (d) Role of USTR The United States Trade Representative, in consultation with the Secretary of Treasury, the Secretary of Commerce, and the heads of other relevant Federal agencies, shall advise the President in determining the effective rate of duty imposed by the nontariff barriers applied by a foreign country with respect to a good, alone or in combination with any tariffs imposed by that country on that good, in the case of a determination described in subsection (a)(2). (e) Lower rate of duty The President may impose a rate of duty on imports of a good from a foreign country that is lower than the rate of duty described in subsection (b)(2)(A) or lower than the effective rate of duty described in subsection (b)(2)(B), as the case may be, if the President determines that application of such lower rate of duty is necessary and appropriate. (f) Higher rate of duty If the President imposes a rate of duty on imports of a good from a foreign country under subsection (b)(2), and the country further increases its rate of duty on imports of the good from the United States, the President may further increase the rate of duty on imports of the good from the country to a rate that is equal to the rate of duty applied by that country. (g) Termination The President shall terminate the imposition of any increase in the rate of duty on imports of a good from a foreign country under subsection (b)(2) effective on the date on which the President determines that— (1) the foreign country is no longer— (A) imposing a rate of duty with respect to the good, as described in subsection (a)(1); or (B) applying nontariff barriers with respect to the good, as described in subsection (a)(2); or (2) continued imposition of the increased rate of duty on imports of the good from the foreign country is not in the economic or public interest of the United States.