Truth in Tariffs Act

Bill Number

H.R. 3306

Origin Chamber

House

Congress

119th Congress, Session 1

Policy Area

Commerce

Status

Introduced

Latest Action

2025-05-08: Referred to the House Committee on Energy and Commerce.

Last Updated

2026-06-09T15:25:48Z

AI-Generated Summary

Purpose

The Truth in Tariffs Act aims to promote transparency by requiring sellers to disclose how specific tariffs—imposed by the President—increase the prices of goods sold to consumers in the United States. This helps consumers understand the direct impact of these tariffs on costs.

Key Provisions

• Disclosure Requirement: Sellers must clearly and conspicuously display the portion of a good's price that comes from a "covered tariff," labeled as a "tariff surcharge," when selling to U.S. consumers.
• Exemption for Small Businesses: The rule does not apply to sales by small businesses, defined under the Small Business Act as entities meeting size standards set by the Small Business Administration (e.g., based on revenue or employee count).
• Regulatory Authority: The Federal Trade Commission (FTC) can issue rules to implement the law, following standard administrative procedures.
• Enforcement Mechanism: Violations are treated as unfair or deceptive practices under the FTC Act, allowing the FTC to investigate, penalize, and enforce using its existing powers (e.g., fines, injunctions).
• Effective Date: The requirements apply to sales starting 30 days after the law is enacted.
• Definition of Covered Tariff: Refers to tariffs or tariff rate changes imposed by the President on an emergency or discretionary basis that take effect on or after January 20, 2025 (the start of the next presidential term).

Significant Changes to Existing Law

• This introduces a new mandatory disclosure rule for tariff-related price increases, which does not currently exist in U.S. consumer protection or trade laws.
• It expands the FTC's role in trade-related transparency by linking tariff disclosures to its authority over deceptive practices, without altering the President's existing power to impose tariffs under laws like Section 232 of the Trade Expansion Act or emergency powers.

Potential Impacts

• On Government Agencies: The FTC gains additional enforcement responsibilities, potentially increasing its workload and budget needs for oversight of retail and import sectors.
• On Citizens (Consumers): Provides clearer information on price components, empowering informed purchasing decisions and potentially reducing surprise cost increases from tariffs.
• On Businesses: Larger retailers and importers must adjust pricing displays (e.g., on shelves, websites, or receipts), which could raise compliance costs but exempts small businesses to ease burdens on them.
• On International Relations: By highlighting tariff costs, the law may indirectly pressure future tariff policies, as visible price hikes could influence public opinion on trade disputes with other countries, though it does not change tariff imposition itself.

Main Stakeholders Affected

• Consumers: Primary beneficiaries, gaining visibility into tariff-driven costs.
• Sellers and Retailers: Must comply with disclosures, affecting operations for non-exempt businesses.
• Small Businesses: Protected from the requirement, reducing regulatory burden.
• Federal Trade Commission (FTC): Tasked with regulation and enforcement.
• Importers and Trade Partners: Indirectly impacted, as tariffs on foreign goods (e.g., from China or the EU) become more transparent in U.S. markets.
• The President and Executive Branch: Disclosures apply only to post-2025 discretionary tariffs, potentially affecting how such policies are perceived without limiting their use.

Notable Legal, Constitutional, or Political Implications

• Legal: Strengthens consumer protection laws by integrating trade transparency into FTC enforcement, but relies on existing presidential tariff authority without challenging it. Potential for litigation if disclosures are deemed burdensome or if FTC regulations overreach.
• Constitutional: No direct conflict with separation of powers, as it regulates private disclosures rather than executive trade decisions; however, it could invite scrutiny if seen as indirectly constraining presidential foreign affairs powers.
• Political: Bipartisan sponsors (Democrats) suggest focus on accountability for tariff policies often linked to executive actions; may fuel debates on trade wars by making economic costs explicit, influencing elections or negotiations without partisan bias in the text.

This summary was generated by AI and may contain inaccuracies. Refer to the official source document for the authoritative text.

Sponsor

Rep. Raskin, Jamie [D-MD-8]

Cosponsors (33)

Rep. Fields, Cleo [D-LA-6], Rep. McGovern, James P. [D-MA-2], Rep. Simon, Lateefah [D-CA-12], Rep. Fletcher, Lizzie [D-TX-7], Rep. Velázquez, Nydia M. [D-NY-7], Rep. Doggett, Lloyd [D-TX-37], Rep. Garcia, Robert [D-CA-42], Rep. Kamlager-Dove, Sydney [D-CA-37], Rep. Stansbury, Melanie A. [D-NM-1], Rep. Carbajal, Salud O. [D-CA-24], Rep. Casar, Greg [D-TX-35], Rep. Garcia, Sylvia R. [D-TX-29], Rep. Scanlon, Mary Gay [D-PA-5], Rep. Vargas, Juan [D-CA-52], Rep. Watson Coleman, Bonnie [D-NJ-12], Rep. Mfume, Kweisi [D-MD-7], Del. Norton, Eleanor Holmes [D-DC-At Large], Rep. Cleaver, Emanuel [D-MO-5], Rep. Olszewski, Johnny [D-MD-2], Rep. Balint, Becca [D-VT-At Large], Rep. Barragán, Nanette Diaz [D-CA-44], Rep. Quigley, Mike [D-IL-5], Rep. Carson, André [D-IN-7], Rep. Gomez, Jimmy [D-CA-34], Rep. Waters, Maxine [D-CA-43], Rep. Ramirez, Delia C. [D-IL-3], Rep. Min, Dave [D-CA-47], Rep. Thanedar, Shri [D-MI-13], Rep. Stanton, Greg [D-AZ-4], Rep. Kennedy, Timothy M. [D-NY-26], Rep. McIver, LaMonica [D-NJ-10], Rep. Latimer, George [D-NY-16], Rep. Ansari, Yassamin [D-AZ-3]

Recent Actions

• 2025-05-08: Referred to the House Committee on Energy and Commerce.
• 2025-05-08: Introduced in House
• 2025-05-08: Introduced in House

Bill Versions

• Truth in Tariffs Act — issued 2025-05-08 — PDF (3 pages)