Gillibrand and Welch Set Fall Senate Hearing Schedule For Tariff Repeal Bill
On August 27, 2026, Senators Kirsten Gillibrand of New York and Peter Welch of Vermont announced the Banning Antiquated Duties and Delivering Equitable American Levies Act, while outlining a tentative senate hearing schedule aimed at repealing tariffs imposed under Section 338 of the Tariff Act of 1930.
What did New York and Vermont Senate Democrats propose?
New York Senator Kirsten Gillibrand and Vermont Senator Peter Welch proposed the BAD DEAL Act, a bill that would repeal Section 338 of the Tariff Act of 1930, cancel related presidential tariff proclamations, and refund duties already collected from U.S. importers, including newly announced 50% tariffs on Canadian goods.
The proposal is formally titled the Banning Antiquated Duties and Delivering Equitable American Levies Act, or BAD DEAL Act. According to the draft bill text published by Senator Welch’s office on August 27, 2026, the measure would:
- "Repeal Section 338 of the Tariff Act of 1930 (19 U.S.C. 1338)."
- Void "any Presidential proclamation promulgated in whole or in part pursuant to such section."
- Require federal agencies to provide refunds of each tariff or duty imposed under Section 338.
CPA Practice Advisor reported on August 31, 2026, that the bill is a direct response to new tariffs on Canadian imports, including a 50% duty rate announced by President Donald Trump over the preceding weekend. A press release from Representative Brad Schneider’s office, dated August 29, 2026, describes the BAD DEAL Act as designed to "repeal Section 338 and refund all duties paid under this authority."
Why are the senators targeting Section 338 tariffs now?
Senators Gillibrand and Welch are targeting Section 338 tariffs because President Trump recently used this long‑dormant law to impose sweeping duties on Canadian imports, including a 50% tariff that Democrats say is hurting American families and businesses and reviving trade tensions with a key U.S. ally.
According to WAMC’s report on August 28, 2026, the BAD DEAL Act aims to reverse "Trump administration tariffs on Canada" by repealing tariffs levied under Section 338 and refunding Americans who have been paying the higher prices. CPA Practice Advisor notes that the tariffs apply broadly to Canadian imports and followed a presidential announcement of a 50% tariff rate.
Gillibrand’s Senate office framed the move squarely as a consumer issue. In an August 27, 2026 press notice, her office stated that "New York families have spent over $5,000 more due to President Trump’s tariff chaos and other reckless policies," citing the cumulative cost of recent trade measures and inflation pressures. That figure reflects Gillibrand’s internal analysis and is presented as an impact estimate rather than official federal data.
The BAD DEAL Act also fits into a wider pattern of congressional resistance to Trump‑era tariff policies. On February 24, 2026, Senator Ron Wyden introduced the Tariff Refund Act of 2026, a separate proposal to refund certain duties after court rulings against earlier tariffs. In October 2025, Senator Welch joined a bipartisan group praising Senate passage of a different measure to repeal Trump’s global tariffs imposed under emergency authorities. These earlier efforts created a legislative backdrop for the targeted repeal of Section 338 in late August 2026.
How would the BAD DEAL Act change current tariffs and refund payments?
The BAD DEAL Act would repeal the legal authority for Section 338 tariffs, cancel any related presidential proclamations, and order federal agencies to issue refunds to importers for all duties collected under that section, including the recent 50% tariffs on Canadian products.
The bill text from Senator Welch’s office lays out the mechanics clearly. Key implementation provisions include:
- Repeal of Section 338 itself, removing the statutory basis for retaliation‑style tariffs originally crafted in 1930.
- Termination of any presidential proclamation that invoked Section 338, meaning the tariffs become legally void once the act takes effect.
- A directive that relevant agencies "take such actions as may be necessary to provide for the refund of each tariff or other duty imposed and collected" under Section 338.
Inside U.S. Trade reported on August 28, 2026 that Democrats on both the House Ways and Means Committee and the Senate Finance Committee are backing the measure, viewing refunds as central to the bill’s design. Representative Brad Schneider’s press release underscores that point, saying the BAD DEAL Act would "refund all duties paid under this authority" and thus return money to U.S. businesses that import from Canada.
While precise refund totals have not been published, Gillibrand’s office argues that families and firms in New York and other states face higher costs on everyday goods sourced from Canada. By canceling the tariffs and ordering refunds, the sponsors say they aim to ease price pressures and send a message that Congress will not accept unilateral tariff hikes launched under obscure provisions of trade law.
What is the planned Senate process and timetable for the tariff repeal bill?
The sponsors expect the BAD DEAL Act to enter the Senate Finance Committee when lawmakers return from their August recess, with hearings anticipated in September and potential floor consideration before year‑end, mirroring timelines used for other tariff‑related bills introduced in the 2025‑2026 Congress.
CPA Practice Advisor reports that Gillibrand and Welch "signaled their intent to introduce the bill when the Senate returns to session next month," referencing the early‑September reconvening after the summer break. Under standard Senate procedure, tariff legislation is referred to the Finance Committee, which is already handling related measures such as Wyden’s Tariff Refund Act of 2026.
The expected steps, based on the sponsors’ statements and usual Senate practice, are:
- Formal introduction of the BAD DEAL Act in early September 2026, with Gillibrand as the lead Senate sponsor and Welch as co‑sponsor.
- Referral to the Senate Finance Committee, where staff have experience with tariff repeal and refund proposals.
- Potential hearings in the fall focusing on Section 338’s history, Trump’s recent tariffs on Canada, and the impact on U.S. businesses.
- Committee markup followed by a possible floor vote before the end of the 2026 session, depending on broader negotiations over trade and tax legislation.
Representative Schneider has already filed the House companion, positioning it in the Ways and Means Committee’s trade subcommittee. That parallel track means House hearings and markups could run close to the Senate’s fall calendar, raising the possibility of a coordinated push to move the repeal through both chambers within months.
How does this effort relate to previous congressional actions on Canada tariffs?
The BAD DEAL Act builds on earlier federal and state‑level moves opposing Trump’s tariffs on Canada, including a Vermont Senate resolution urging the removal of all Canada‑related tariffs and a 2025 bipartisan Senate vote to roll back other Trump global tariffs.
On the state side, the Vermont Legislature adopted S.R.11 in the 2025‑2026 session, a resolution honoring historic ties with Canada and Quebec and calling on Congress to reassert its trade policy role. The text urged President Trump to "remove all tariffs he has imposed on Canada since January 20, 2025," including those outside the United States‑Mexico‑Canada Agreement. That resolution, though symbolic, signaled deep concern in Welch’s home state about the direction of trade relations.
At the federal level, Senator Welch has already worked on broader tariff rollbacks. In October 2025, he joined a bipartisan group—including Senators Ron Wyden, Chuck Schumer, Rand Paul, Tim Kaine, Jeanne Shaheen and Elizabeth Warren—in supporting a measure that would repeal Trump’s global tariffs enacted under emergency powers. The resolution passed the Senate on a 51‑47 vote, then moved to the House, setting a precedent for challenging presidential tariff actions.
WAMC’s coverage links Gillibrand and Welch’s new proposal directly to those earlier fights over tariffs on Canadian products. Their offices portray the BAD DEAL Act not as a standalone event but as part of a broader effort to restore congressional control over trade and to protect cross‑border economic ties that are central to communities in northern New York and Vermont.
Who would be most affected if Section 338 tariffs are repealed?
If Congress passes the BAD DEAL Act, importers that pay duties on Canadian goods would see direct financial relief through refunds, while consumers in border states such as New York and Vermont could face lower prices on products sourced from Canadian suppliers.
The sectors most exposed to Canada‑focused tariffs include manufacturers and retailers that rely on Canadian inputs, cross‑border wholesalers, and small businesses near the border that import consumer goods. While precise trade volumes tied to Section 338 tariffs have not been released, the sponsors highlight several categories affected by Trump’s latest actions:
- Household products imported from Canada that now carry a 50% tariff.
- Industrial inputs and components sourced by manufacturers in New York and New England.
- Food and agricultural products moving through established cross‑border supply chains.
Gillibrand’s office estimated that "New York families have spent over $5,000 more" due to a combination of tariffs and other policies, framing the repeal as part of a strategy to reduce living costs. While that figure aggregates various economic pressures, tariffs on Canada are among the components cited in the senator’s argument for relief.
Businesses that paid duties under Section 338 would stand to receive refunds. Inside U.S. Trade notes that Democrats backing the BAD DEAL Act see these refunds as a way to restore competitiveness and cash flow in sectors hit by sudden tariff hikes. Schneider’s press release stresses that the bill is intended to "refund all duties paid", signaling that the sponsors view repayment as a central promise to affected companies.
What happens next in Congress and in U.S.-Canada trade relations?
The BAD DEAL Act faces negotiations within the Senate Finance and House Ways and Means committees, but it enters the fall session with visible Democratic support and fits broader efforts to ease tensions with Canada, a key trading partner for New York and Vermont.
In the near term, the key milestones will be:
- Formal Senate introduction and committee referral when lawmakers return from recess in early September 2026.
- Committee work on testimony from business groups, trade experts and possibly Canadian officials or consular representatives.
- Potential bundling of the BAD DEAL Act with other tariff refund bills such as Wyden’s Tariff Refund Act of 2026, to create a broader package.
- House hearings under the Ways and Means trade subcommittee on Schneider’s companion bill.
If Congress ultimately repeals Section 338 tariffs and orders refunds, the decision would mark a reset of the most recent clash over U.S.-Canada trade triggered by Trump’s 2026 tariff announcement. Vermont’s S.R.11 and past Senate votes against wider Trump tariffs show that concerns about Canada trade are already part of the legislative record.
For New York and Vermont, where cross‑border flows of goods and tourism play a visible role in local economies, the outcome of this tariff repeal push will shape prices, business planning and political narratives heading into the 2026 election cycle.
