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U.S. Government Explores Policy Options on Tariff-Related Price Increases

by Daisy Mae D.
05/22/2025
in Tariffs & Duties

By supplychainreport

Former U.S. President Donald Trump has publicly addressed concerns over potential price increases by major retailers in connection with U.S. tariffs. Companies such as Walmart, Amazon, Ford, and Mattel have been mentioned in recent statements, with Trump urging them to absorb tariff-related costs rather than passing them on to consumers.

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While these remarks currently serve as public pressure, there are broader policy tools that could be employed to address pricing strategies more formally. These include possible industry-wide investigations by the Federal Trade Commission (FTC), inquiries into specific products and company profit margins, advocacy for new legislation in Congress, or executive actions that impact pricing.

Some of these options were previously considered under the Biden administration during discussions about inflation and price increases in specific sectors, such as meatpacking. Historical precedents also exist, notably a 1971 executive order by President Richard Nixon that implemented a temporary freeze on wages and prices to address inflation.

Economist Ryan Bourne of the Cato Institute notes a trend toward greater government scrutiny over corporate pricing. While dramatic interventions like price controls remain unlikely at present, he observes that executives may increasingly weigh political reactions when making pricing decisions.

At this stage, no formal policy changes have been announced. However, commentary suggests that pricing, particularly in response to tariffs, remains an issue under close watch by political leaders.

#TariffPolicy #PriceOversight #EconomicPolicy #SupplyChainNews #RetailPricing

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