WASHINGTON, D.C. — U.S. Rep. Josh Gottheimer of New Jersey introduced legislation Friday that would require the Congressional Budget Office (CBO) to analyze the economic impact of any new tariffs before they are enacted.
The proposal, titled the Tariff Impact Act, aims to provide greater transparency by mandating that the nonpartisan CBO assess how future tariffs could affect prices, small businesses, and overall economic conditions.
“Families and businesses deserve to understand the real cost to their pocketbooks before new tariffs take effect,” said Gottheimer, a Democrat representing New Jersey’s 5th Congressional District. “This commonsense bill will bring much-needed transparency.”
According to Gottheimer, recent increases in tariffs have created uncertainty and placed financial strain on households and small businesses. A Yale University study cited by the congressman estimated that tariffs could increase annual costs for New Jersey families by more than $2,300.
Economists from Moody’s and J.P. Morgan, as well as Federal Reserve Chair Jerome Powell, have warned that tariffs could contribute to inflation and slower economic growth — a phenomenon Powell referred to as “tariff inflation.”
The bill has several original cosponsors, including Reps. Cleo Fields (D-La.), André Carson (D-Ind.), and Dina Titus (D-Nev.). It will now be referred to the appropriate committee for consideration.
If enacted, the legislation would apply prospectively to any tariffs introduced after the law takes effect. The bill’s supporters say the measure is designed to give lawmakers and the public a clearer understanding of how trade policy decisions may impact the U.S. economy.
