Maryland Democratic Rep. Jamie Raskin has introduced legislation that seeks to show consumers the extra costs they will have to pay due to tariffs implemented by President Donald Trump.
The “Truth in Tariffs Act” would require large retailers to display the portion of an item’s price that is attributable to tariffs.
Raskin said it would make the costs of tariffs more transparent and empower consumers to make informed decisions.
“President Trump’s universal tariffs constitute an effective national sales tax, which hurts working families the most,” Raskin said in a statement.
The Democratic lawmaker also argues his bill will help protect consumers from price-gouging “by ensuring that large retailers do not use President Trump’s chaotic tariffs rollout as an excuse to hike up prices even further.”
Congressional Democrats have been highly critical of the tariffs, charging that they could bring back inflation by pushing up prices and send the country into a recession.
White House rejects calling tariffs a tax
White House Press Secretary Karoline Leavitt was asked several questions about the president’s tariffs policy on Friday, since top U.S. officials are meeting with a high-level delegation from China this weekend to talk about trade and tariffs.
She rejected assessments that the U.S. tariffs are effectively a tax hike on consumers.
“Tariffs are a tax hike on foreign countries that … have been ripping us off,” Leavitt said. “Tariffs are a tax cut for the American people.”
But, economic experts say the impact of tariffs on American consumers can’t be ignored.
Many predict consumers will see higher prices in the coming months on various goods from overseas.
Virtually all Americans expect tariffs will raise prices, according to a Gallup poll.
Several companies have said they have already raised prices, or that their prices will increase soon.
Posting tariff costs
Some small businesses have begun showing extra tariffs costs on their own.
Last month, the White House moved quickly to try to shut down Amazon’s consideration of a plan to post tariff costs.
After reports that the huge online retailer was considering the display of tariff costs next to the total price of some products, Trump personally called company founder Jeff Bezos to complain.
The tariffs were reportedly to be posted on Haul, which Amazon utilizes to compete with the Chinese discount retailer Temu.
Ultimately, Amazon backed off of the idea and a spokesman said the plan was never approved.
As for Raskin’s legislation, while it’s getting attention, it has very little chance of moving forward in the Republican-controlled House.
While some Republicans have indicated they don’t support the president’s tariffs, they also don’t want to challenge his policy as they work to get his legislative agenda passed through budget reconciliation.
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