DeLauro, Craig, Ocasio-Cortez Introduce NO GOUGE Act to Stop Corporate Abuse of Tariffs

WASHINGTON – Today, Congresswoman Rosa DeLauro (CT-03), Congresswoman Angie Craig (MN-02), and Congresswoman Alexandria Ocasio-Cortez (NY-14) introduced the No Gratuitous Overcharging Ubiquitous Global Exports (No GOUGE) Act, which takes a comprehensive approach to crack down on corporate price gouging tactics made possible by President Trump’s tariffs.

The No GOUGE Act establishes a ban on using tariffs as a pretext for price gouging, with a focus on companies with outsize influence and leverage in the market. It also empowers both the Federal Trade Commission and state attorneys general to investigate and seek relief when companies use tariffs as a reason to price gouge, and requires reporting on the impact of tariffs and enforcement on the prices of consumer goods.

“The American people are experiencing a cost-of-living crisis, which President Trump is making worse with his chaotic tariffs on essential goods, from produce to baby strollers. Just as they did during his first term, giant corporations are taking advantage of these price hikes to enrich themselves at their customers’ expense, raising prices far more than their costs have increased, and even raising prices on goods that have not been tariffed at all,” said Congresswoman DeLauro. “Large companies like Walmart have already said they will raise prices, and corporate investors have expressed delight on earnings calls about their ‘new pricing power’. President Trump started this trade war, and he must not give a pass to corporations that are using it to exploit middle class, working class, and vulnerable families. This legislation would empower the Federal Trade Commission to crack down on firms that dramatically hike their prices during the President’s trade war, and I will continue to fight for a worker-centered trade strategy that does not give away the farm to billionaires and multinational corporations.”

“Minnesotans are already struggling with the sky-high cost of living, so while the President launches us headfirst into a global trade war, we have to work proactively to put guardrails in place that protect consumers from exorbitant price-hikes,” said Rep. Craig. “I’m proud to be introducing this legislation alongside my colleagues to prevent large companies from taking advantage of the Administration’s reckless trade policies to price gouge Minnesotans.” 

“Trump campaigned on lowering costs for consumers, but his policies in office are having the opposite effect: squeezing consumers and small businesses who can’t afford to keep up while large corporations that make billions in profits pass higher prices on to working people,” saidCongresswoman Alexandria Ocasio-Cortez. “The No GOUGE Act will protect consumers and small businesses by allowing the FTC to investigate large corporations that use tariffs as cover to price gouge everyday Americans. In the richest country in the history of the world, people must be able to afford to live.”

“We all saw how giant corporations exploited the COVID pandemic to jack up prices far beyond inflation and squeeze every penny from America’s working families,” said Jody Calemine, Director of Advocacy at AFL-CIO. “We cannot allow these profiteers to use trade policy as cover to further jack up prices, not to cover costs but to gouge the consumer. The labor movement strongly supports the No GOUGE Act to keep corporations honest and prices down.”

“Tariffs are essential to defending our jobs and industries—but they’re no excuse for corporate price gouging,” USW President David McCall. “When powerful corporations exploit market conditions to hike prices, it erodes trust in critical trade enforcement. The No GOUGE Act rightly reins in that abuse and protects working families.”

“Dominant corporations have shown time and time again that they will exploit any sort of chaos to pad their bottom line at the expense of hardworking Americans. Trump’s slapdash tariff policy is just the latest cover to do so.” said Nidhi Hegde, Executive Director of the American Economic Liberties Project. “This is commonsense legislation to prevent the biggest corporations from price gouging consumers and small businesses under the guise of tariffs — and will empower federal and state enforcers to hold them accountable.”

 “Inflation and tariffs are raising prices, and corporate greed is pushing them even higher,” said Lindsay Owens, Executive Director of Groundwork Collaborative. “While working families struggle to afford the basics, companies are using the volatility in the economy as cover to hike their prices and rake in record profits. The No GOUGE Act cracks down on price gougers and stands up for everyday Americans who deserve to pay a fair price.” 

During the COVID-19 pandemic, a Federal Trade Commission report found that companies swiftly raised prices to take advantage of supply chain disruptions. A survey released last month by the Federal Reserve Bank of New York showed that many companies are even raising prices on non-tariffed goods, and confirmed that companies are taking advantage of the cover provided by President Trump’s tariffs to hike prices on tariffed and non-tariffed goods. Some companies are even hiring “price optimization consultants” who can advise them on how to take advantage of the market conditions President Trump’s tariffs have created by hiking consumer prices as high as possible. Cumulatively, these prices increases are leading to higher inflation and driving up the cost of living.  

The legislation is endorsed by the AFL-CIO, United Steel, Paper and Forestry, Rubber, Manufacturing, Energy, Allied Industrial and Service Workers International Union, commonly known as the United Steelworkers (USW), International Union, United Automobile, Aerospace and Agricultural Implement Workers of America (UAW), American Economic Liberties Project, and Groundwork Collaborative.

The text of the legislation is available here, a one-pager is available here, and a section by section summary is available here.