What does Preamble of Small Business Liberation 2.0 Act do?

This bill, formally titled 'A BILL To exempt small business concerns from duties imposed by the President under section 122 of the Trade Act of 1974 and to prevent price gouging with respect to goods subject to such duties.' aims to exempt small business concerns from duties imposed by the President. The bill also seeks to prevent price gouging related to goods subject to these duties.

What does SHORT TITLE. of Small Business Liberation 2.0 Act do?

This bill is formally titled the Small Business Liberation 2.0 Act.

What does DEFINITIONS. of Small Business Liberation 2.0 Act do?

This section defines key terms used throughout the Act. The 'Commission' is defined as the Federal Trade Commission. A 'component' is a good offered for sale as part of a final good. A 'covered duty' refers to duties imposed under section 122 of the Trade Act of 1974. A 'covered good' includes final goods or components subject to covered duties, goods assembled in the U.S. containing such components, goods with planned duties, and goods assembled in the U.S. with components related to planned duties. A 'duty-related shock date' is any date within 30 days where duties affecting at least 5 Harmonized Tariff Schedule subheadings take effect or are publicly announced. A 'final good' is a good ready for sale without further assembly. A 'good' is any good offered for sale in commerce. A 'planned duty' is a duty intended to be imposed or increased, demonstrated by a public statement from specified officials. The definition of 'small business concern' is taken from the Small Business Act. The term 'State' includes states, territories, and federally recognized Indian Tribes. The 'ultimate parent entity' is defined by a regulation in title 16 of the Code of Federal Regulations.

What does EXEMPTION AND REFUNDS FOR SMALL BUSINESS CONCERNS FROM DUTIES of Small Business Liberation 2.0 Act do?

This section provides an exemption from covered duties for goods imported by or for the use of a small business concern. The President is required to refund any covered duties paid on goods imported by or for the use of a small business concern. Refunds must be issued no later than 90 days after the enactment of this Act.

What does PREVENTION OF PRICE GOUGING WITH RESPECT TO GOODS SUBJECT TO of Small Business Liberation 2.0 Act do?

This section prohibits the sale or offer for sale of 'covered goods' in the United States at an 'unreasonably high price' during a 5-year period following the implementation or increase of a 'covered duty'. The prohibition applies regardless of a person's position in the supply chain. An unreasonably high price is defined as a price increase exceeding the costs directly generated by the covered duty, plus any additional costs demonstrating the duty wasn't a pretext for the price increase. Small businesses are exempt from this prohibition. A person is presumed to be in violation if they have 'unfair leverage' and sell a covered good at a price higher than the 180-day baseline price. This presumption can be rebutted with clear and convincing evidence that the price increase is solely attributable to covered duty costs. The Commission is responsible for promulgating regulations to carry out this section and will consult with various agencies. State attorneys general can bring civil actions on behalf of residents affected by violations. The Commission must establish a mechanism for consumers to report potential violations within 180 days of the Act's enactment.

What does REPORTS. of Small Business Liberation 2.0 Act do?

This section mandates reports from the United States International Trade Commission and the Bureau of Labor Statistics to Congress and the public. These reports, due within one year of the Act's enactment and annually thereafter, will focus on the prices of goods sold by entities not considered small businesses. The Bureau of Labor Statistics must assess whether existing surveys provide sufficient data on pricing decisions and consumer prices. If surveys are deemed insufficient, the Bureau must develop new questions to collect necessary data. The Federal Trade Commission must also submit an annual report to Congress and the public detailing its enforcement activities under this Act. The Federal Trade Commission's report will include an assessment of the impact of enforcement on consumer prices, covering both covered goods and all goods.

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Small Business Liberation 2.0 Act

Last updated: 3/10/2026 · Introduced: 3/10/2026

Author: Edward Markey (D-MA)

TL;DR (AI)

This bill exempts small businesses from duties imposed by the President under the Trade Act of 1974 and requires refunds for duties already paid.
The bill prohibits price gouging on goods affected by these duties, defining an unreasonably high price as exceeding the direct costs generated by the duty, with an exception for small businesses.
The Federal Trade Commission will oversee enforcement of the price gouging prohibition, establish a consumer reporting mechanism, and issue annual reports on enforcement activities and their impact on consumer prices.

119th Congressin committeeOfficial page

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Includes provisions on preamble, short title., and 4 more.

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