This legislation requires the President to impose a new 10 percent ad valorem duty on all goods imported into the United States, effective from the date of enactment. This initial duty serves as a baseline for subsequent annual adjustments. For each calendar year following the initial imposition, the duty will be adjusted based on the United States' trade balance in goods and services from the immediately preceding year. If the U.S. experienced a trade deficit , the duty will increase by an additional 5 percent ad valorem; conversely, if there was a trade balance or surplus , the duty will decrease by 5 percent ad valorem, though it cannot be reduced below zero. It is specified that these newly imposed duties are additional to any other duties already mandated by law for imported goods.