S.1741 - Truth in Tariffs Act (119th Congress)
Summary
The Truth in Tariffs Act aims to increase transparency regarding the impact of tariffs on consumer goods. It mandates that sellers clearly display the portion of a product's price attributable to covered tariffs, identified as a 'tariff surcharge.' This requirement applies to all sellers except small businesses, as defined by the Small Business Act.
Expected Effects
Consumers will be more aware of how tariffs affect the prices they pay for goods. This increased transparency could influence consumer purchasing decisions and potentially put pressure on policymakers regarding tariff policies. The Federal Trade Commission (FTC) would be responsible for enforcing the Act.
Potential Benefits
- Increased consumer awareness of tariff impacts on prices.
- Potential for more informed consumer purchasing decisions.
- Greater accountability for tariff policies.
- May encourage businesses to seek ways to reduce tariff-related costs.
- FTC enforcement provides a mechanism for addressing violations.
Most Benefited Areas:
Potential Disadvantages
- Compliance costs for businesses (excluding small businesses) to implement the labeling requirements.
- Potential for consumer confusion if the 'tariff surcharge' is not clearly explained.
- Possible competitive disadvantage for businesses that must disclose tariff surcharges compared to small businesses that are exempt.
- Enforcement costs for the Federal Trade Commission.
- Potential for businesses to pass compliance costs onto consumers.
Constitutional Alignment
The bill appears to align with the Commerce Clause (Article I, Section 8, Clause 3) of the Constitution, which grants Congress the power to regulate commerce with foreign nations. By requiring transparency in pricing related to tariffs, the bill aims to regulate an aspect of international trade. The enforcement mechanism through the FTC is consistent with the delegation of regulatory authority to administrative agencies.
Impact Assessment: Things You Care About ⓘ
This action has been evaluated across 19 key areas that matter to you. Scores range from 1 (highly disadvantageous) to 5 (highly beneficial).