Booker, Warren, DeLauro, Lawmakers Renew Push For FTC Action to Prevent Corporations From Using Trump’s Chaotic Tariffs as Cover to Price Gouge Americans

WASHINGTON, D.C. - U.S. Senators Cory Booker (D-NJ), Elizabeth Warren (D-MA), Ruben Gallego (D-AZ), Sheldon Whitehouse (D-RI), and U.S. Representative Rosa DeLauro (D-CT) led a letter to Andrew Ferguson, Chair of the Federal Trade Commission (FTC), urging the agency to investigate tariff-enabled corporate price gouging which is raising costs for American families, and to use its full authority to prevent these unfair and deceptive corporate actions.

The lawmakers previously wrote to the FTC warning that large companies could take advantage of the Trump Administration's chaotic tariff strategy to price gouge consumers. The 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 to 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 2025, the Federal Reserve Bank of New York released new survey results showing 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."

Anecdotes from the Federal Reserve illustrate that tariff-enabled price gouging is already a significant and legitimate concern:

• A heavy construction equipment supplier "raised prices on goods unaffected by tariffs to enjoy the extra margin."
• A contact at the Federal Reserve Bank of San Francisco "observed that price increases that had been implemented in anticipation of certain tariffs were not rolled back once those tariffs were removed."
• The President of the Federal Reserve Bank of Cleveland said she heard of firms "raising prices even though they aren't affected by tariffs because competitors who do face higher import taxes are raising prices."

"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.

The letter is cosigned by U.S. Senators Jeff Merkley (D-OR), Richard Blumenthal (D-CT), and Jacky Rosen (D-NV), and U.S. Representatives Becca Balint (D-VT), Chris Deluzio (D-PA), John Garamendi (D-CA), Pramila Jayapal (D-WA), James P. McGovern (D-MA), Jerrold Nadler (D-NY), Alexandria Ocasio-Cortez (D-NY), and Mark Pocan (D-WI).

To read the full text of the letter, click here.