As Prices Surge, Reed Seeks to Free Americans from Trump’s Costly Tariff Taxes & Refund Their Money

WASHINGTON, DC – Instead of addressing the affordability crisis, President Trump is making it worse and driving up prices at the gas pump, grocery store, and on all manner of day to day products and services. The Trump Administration’s tariff regime and trade wars – including the latest trade spat with Canada that includes regressive 50 percent tariffs on many products traded between the countries -- is needlessly driving up costs for American consumers and businesses and sewing uncertainty. According to the National Taxpayers Union Foundation , tariffs on imports are already costing households in Rhode Island an average of $3,288 in extra spending and have cumulatively cost the state nearly $1.5 billion. U.S. Senator Jack Reed says it is time to put a stop to President Trump unilaterally imposing a de facto national sales tax on the American people. Senator Reed is teaming up with over two dozen U.S. Senate colleagues in introducing legislation that would repeal and refund President Donald Trump’s latest tariffs and limit presidential authority to impose tariffs. The End Trump’s Tariff Tax Act ( S.5390 ) would revoke and refund Trump’s latest barrage of tariffs and repeal archaic authorities he has used to try and widen his chaotic trade war. This legislation would take back taxing power that belongs to Congress under the Constitution by rescinding trade authority President Trump has misused to place tariff taxes on U.S. imports. The End Trump’s Tariff Tax Act would also undo President Trump’s recent Section 301 tariffs on 60 countries, previously imposed Section 122 temporary global tariffs, and the 50 percent Canadian tariffs, and requires the President to refund businesses for the higher costs these tariffs created. In an effort to simplify and expedite the refund process, the bill mandates refunds of the invalidated tariffs by directing Customs and Border Protection to issue them automatically within 30 days and prioritize relief for small businesses most impacted. “President Trump’s failed economic policies are making it harder for Americans to make ends meet. His tariff regime and trade wars are costing Americans every day as he continues to drive up prices and lower people’s living standards. Republicans are enabling Trump’s poor decisions while Democrats are working to hold him accountable. The End Trump’s Tariff Tax Act would halt President Trump’s ineffective and unpopular tariff regime and expedite refunds,” said Senator Reed. “There is a reason the Wall Street Journal called Trump’s actions “the dumbest trade war in history.” It certainly isn’t benefiting America, that’s for sure. Not only are U.S. businesses paying increased costs for needed commodities like aluminum, but they are also seeing less demand for American made goods and services.” Reed notes that Trump’s trade war tariffs are a major factor in the U.S.’s unexpectedly high and stubborn inflation rate, which ticked up last month and currently stands at 3.4 percent, well above the Federal Reserve Bankss 2 percent long-term target. Trump’s trade fight with Canada is especially challenging for Rhode Island, which maintains strong economic ties with our neighbors to the north and does a lot of international business with Canada, including attracting Canadian tourists. Rhode Island, whose largest share of foreign tourists came from Canada in 2024, and the entire U.S. are already seeing reduced tourism revenue due to President Trump’s attacks on our closest neighbor. American businesses lost $2.3 billion in Canadian tourism revenue last year, with Canadian travel to the U.S. falling 25% from 2024 to 2025. President Trump’s latest round of 50 percent tariffs on Canadian goods means products that used to cost $100 now cost $150. Senator Reed says President Trump’s childish mocking of Canada and renaming Lake Ontario has needlessly antagonized Canadians and created a trade conflict that is straining bilateral relations and deteriorating the long-standing, close partnership between the U.S and its neighbor to the north. Last year, Reed helped pass two bipartisan resolutions to overturn the President’s previous Canadian tariffs, but the Trump-backed House failed to pass either measure. Reed is urging Congress to again take bipartisan action before Trump’s trade war further escalates. The Trump Administration recently announced that it will bar the import of certain dairy products, motorcycles, and alcoholic drinks from Canada, starting on September 29. “Working people deserve a break from Trump’s regressive tariff taxes and trade wars. The End Trump’s Tariff Tax Act would halt these tariffs, offer American businesses some much needed certainty, and provide families with financial relief and refunds. The Trump tariffs have already cost Americans billions of dollars. It’s time for action before Americans are forced to pay billions more for the exact same products that used to cost a whole lot less,” said Senator Reed. The End Trump’s Tariff Tax Act is led by U.S. Senator Chuck Schumer (D-NY) and, in addition to Senator Reed, original cosponsors include U.S. Senators Patty Murray (D-WA), Ron Wyden (D-OR), Maria Cantwell (D-WA), Amy Klobuchar (D-MN), Mark Warner (D-VA), Kirsten Gillibrand (D-NY), Chris Coons (D-DE), Richard Blumenthal (D-CT), Angus King (I-ME), Tim Kaine (D-VA), Elissa Slotkin (D-MI), Peter Welch (D-VT), Gary Peters (D-MI), Jeanne Shaheen (D-NH), Angela Alsobrooks (D-MD) Makie K. Hirono (D-HI), Jeff Merkley (D-OR), Chris Van Hollen (D-MD) Andy Kim (D-NJ), Michael Bennet (D-CO), Alex Padilla (D-CA), Ruben Gallego (D-AZ), Jacky Rosen (D-NV), Ben Ray Luján (D-NM), Brian Schatz (D-HI), Adam Schiff (D-CA), and Tammy Duckworth (D-IL).