Back to all bills
S 1741119th CongressIntroduced
Truth in Tariffs Act
Introduced: May 13, 2025
Economy & TaxesFinancial Services
Standard Summary
Comprehensive overview in 1-2 paragraphs
The Truth in Tariffs Act would require sellers to reveal, to US consumers, the portion of a product’s price that is due to certain tariffs. Starting 30 days after enactment, most retailers would have to display, in a clear and conspicuous way, the amount of the price attributed to a “covered tariff,” labeled as a “tariff surcharge.” Small businesses would be exempt from this requirement. The Federal Trade Commission (FTC) would enforce the rule as an unfair or deceptive trade practice, with authority to issue regulations and penalties under the FTC Act. A tariff would qualify as a “covered tariff” if it was imposed on an emergency or discretionary basis by the President and took effect on or after January 20, 2025.
Key Points
- 1Clear disclosure: Retailers must show the portion of a product’s price attributable to a covered tariff, identified as the “tariff surcharge.”
- 2Timing and exemption: The requirement begins 30 days after enactment; small business concerns are exempt from the rule.
- 3Covered tariffs definition: Tariffs that entered into force on or after January 20, 2025, and that were imposed by the President on an emergency or discretionary basis.
- 4Enforcement: Violations would be treated as unfair or deceptive acts or practices under the FTC Act; FTC would enforce with its usual tools, penalties, and procedures.
- 5Rulemaking authority: The FTC can issue regulations necessary to implement this section, following standard notice-and-comment procedures (5 U.S.C. 553).
Impact Areas
Primary group/area affected: US consumers purchasing goods; retailers and sellers (including online platforms) responsible for displaying tariff surcharges.Secondary group/area affected: Importers, manufacturers, and distributors who must determine and communicate the tariff portion of prices; and small businesses exempt from the requirement.Additional impacts: Potential changes in pricing transparency and consumer awareness of tariff-driven price changes; compliance costs and administrative burdens for retailers; possible legal risk for firms if disclosures are incomplete or unclear; increased regulatory activity by the FTC toward tariff-related pricing practices.
Generated by gpt-5-nano on Oct 3, 2025