Toll of Tariffs Act of 2025
Summary
The Toll of Tariffs Act of 2025 directs the United States International Trade Commission (USITC) to conduct a study on the inflationary impact of tariffs imposed by Executive orders issued on or after January 20, 2025. The USITC is then required to report its findings to Congress within 60 days of the Act's enactment. The report must include impacts to the Consumer Price Index (CPI-U) and comparable measures tracking price changes in non-urban areas.
Expected Effects
The Act aims to provide Congress with data on the inflationary effects of recent tariffs. This information could then be used to inform future trade policy decisions. The study will offer insights into how tariffs affect consumer prices across both urban and non-urban areas.
Potential Benefits
- Provides data-driven insights into the actual inflationary impact of tariffs.
- Informs Congress for future trade policy decisions.
- Increases transparency and accountability regarding the economic effects of tariffs.
- Helps assess the effectiveness of tariffs as a policy tool.
- Offers specific data on impacts to the CPI-U and price changes in non-urban areas.
Potential Disadvantages
- The study itself may incur costs for the USITC.
- The 60-day reporting deadline may be too short for a comprehensive analysis.
- The study focuses solely on inflationary impacts, potentially overlooking other economic effects.
- The findings may be used to justify politically motivated trade policies.
- The Act does not address potential remedies for any negative inflationary impacts identified.
Constitutional Alignment
The Act aligns with the powers granted to Congress under Article I, Section 8 of the Constitution, which includes the power to regulate commerce with foreign nations. By requesting a study from the USITC, Congress is exercising its oversight function to gather information relevant to trade policy. The Act does not appear to infringe upon any specific constitutional rights or limitations.
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).