Democrats Push Price Gouging Bill to Counter Trump Tariffs

Democrats in Congress are renewing efforts to pass a federal price gouging law, tying the legislation to President Donald Trump’s newly announced tariffs aimed at reshaping global trade. The proposal, introduced by Sen. Elizabeth Warren (D-Mass.) and Rep. Jan Schakowsky (D-Ill.), would give the Federal Trade Commission $1 billion in new funding and broad authority to investigate companies accused of “grossly excessive” price hikes.

Supporters claim the bill protects families from corporate abuse during economic disruptions, such as trade policy shifts. “Donald Trump’s reckless tariff policies are giving companies cover to squeeze families and raise prices more than necessary,” Warren said. The bill seeks to define price gouging as an unfair and deceptive practice and allow enforcement anywhere in a supply chain.

Critics warn the legislation could have dangerous consequences. Ryan Bourne of the Cato Institute said, “Capping prices below what people are willing to pay for goods would produce shortages and empty shelves during volatile periods.” He argued that businesses face unpredictable costs and risks from tariffs and global disruptions and need pricing flexibility to function.

The bill introduces broad enforcement powers for both the FTC and state attorneys general and includes mandatory corporate disclosures of pricing practices during periods of “market shock,” including trade changes. While it includes limited protections for small businesses with under $100 million in revenue, the legislation could expose even routine price adjustments to legal scrutiny.

Opponents say the measure echoes failed COVID-era proposals and risks deepening supply chain issues. With Republicans controlling both chambers of Congress, the bill faces long odds, particularly as the Trump administration moves to reduce regulatory burdens and support free-market pricing.

MORE STORIES