Gallego, Colleagues Push to Prevent Corporations from Using Trump’s Chaotic Tariffs as Cover to Price Gouge Americans

WASHINGTON – Senators Ruben Gallego (D-AZ), Elizabeth Warren (D-MA), Cory Booker (D-NJ), Sheldon Whitehouse (D-RI),andRepresentative Rosa DeLauro (CT-03)led a letter to Andrew Ferguson, Chair of the Federal Trade Commission (FTC), urging the agency to investigate tariff-enabled corporate price gouging that is raising costs for American families and use its full authority to prevent it.
In May, the lawmakerswroteto the FTC warning that large companies could take advantage of the Trump Administration’s chaotic tariff strategy to price gouge consumers. That letter noted that the on-again, off-again tariff confusion and uncertainty has created a cover for large corporations to raise prices on all goods, regardless of whether they are actually subject to new tariffs, and increase prices above and beyond what is necessary to cover any additional costs. Chair Ferguson did not respond to the lawmakers’ letter and has yet to take discernible action to prevent tariff-related price gouging, despite his own warning that President Trump’s tariffs “should not be interpreted as a green light for price fixing or any other unlawful behavior.”
In June, the Federal Reserve Bank of New York released newsurvey resultsshowing that “a significant share” of companies raised prices of goods and services that are not subject to tariffs, confirming that businesses were indeed “taking advantage of an escalating pricing environment to increase prices.”
“Trump’s on-again, off-again across-the-board tariffs are not helping workers or U.S. industries. Instead, this Administration’s reckless approach is spiking costs for small businesses and creating opportunities for billion-dollar companies to grow their profits and take advantage of consumers,”wrote the lawmakers.“The FTC should be utilizing its full authority to prevent these unfair practices.”
The lawmakers concluded the letter by urging the FTC to use its 6(b) authority to investigate any tariff-enabled price gouging and to issue a report on its findings.
Read the full letterHERE.
7/11/25