Truth in Tariffs Act
The Truth in Tariffs Act would require consumer goods sold in the United States to clearly show the portion of the price that comes from a “tariff surcharge,” i.e., the portion attributable to a covered tariff. A covered tariff is a tariff (including rate changes) imposed on an emergency or discretionary basis by the President and that took effect on or after January 20, 2025. Small business sales are exempt from the disclosure requirement. The Federal Trade Commission (FTC) would regulate and enforce the measure, using its existing authority over unfair or deceptive practices, with rulemaking conducted under standard notice-and-comment procedures. The rule would apply to sales occurring 30 days after enactment. The goal is to increase transparency about how tariffs affect prices and to curb deceptive pricing related to tariff costs. In short, if you buy a consumer good in the U.S. after the effective date, you should see a clear label showing how much of the price is due to a specific new tariff, unless you’re buying from a small business. Retailers and manufacturers would face new labeling and compliance obligations, enforced by the FTC.
Key Points
- 1Requires sellers to display, in a clear and conspicuous way, the portion of a consumer good’s price attributable to a covered tariff, labeled as a “tariff surcharge.”
- 2Exempts sales by small business concerns from the disclosure requirement.
- 3FTC authority to promulgate regulations necessary to implement the act, using standard notice-and-comment rulemaking.
- 4FTC enforcement: violations treated as unfair or deceptive acts or practices under the FTC Act, with the FTC carrying out enforcement similarly to other FTC Act provisions.
- 5Applicability and timing: applies to sales occurring 30 days after enactment; “covered tariff” is defined as a tariff imposed on an emergency or discretionary basis by the President and that entered into force on or after January 20, 2025.