Illinois State Senator Steve Stadelman has introduced legislation aimed at increasing consumer transparency by requiring retailers to disclose how much federal tariffs contribute to the final price of goods sold to the public.
The proposed Tariff Transparency Act, filed as Senate Bill 2957, would mandate that retailers clearly display the portion of a product’s price attributable to federal tariffs directly on the product’s price tag at the point of sale. The measure is intended to help consumers better understand why the cost of everyday goods has risen amid ongoing trade policies and tariff regimes.
“Rising retail costs due to tariffs shouldn’t be hidden from consumers who are already facing a cost-of-living crisis,” Stadelman, a Democrat representing Rockford, said in a statement. “When tariffs impact retail prices, that information should be readily visible to consumers.”
Key Provisions of the Bill
Under the legislation:
- Retailers would be required to itemize tariff-related costs on product price tags.
- Small businesses earning less than $500,000 annually would be exempt.
- Products where tariffs account for less than 2% of the retail price would also be excluded from the requirement.
Supporters of the bill argue that the measure empowers consumers to make informed purchasing decisions while fostering accountability around federal trade policies that affect household budgets.
Legal and Economic Context
Economists and trade analysts across the political spectrum have cautioned that tariffs function as indirect taxes on U.S.-based importers, increasing operational costs that are often passed on to consumers. While tariffs are imposed at the federal level, their economic effects are frequently felt most acutely at the retail checkout counter.
Legal analysts note that the proposal raises novel questions about the intersection of state consumer protection laws and federal trade policy, though similar disclosure requirements already exist in areas such as fuel taxes and environmental fees.
“Families deserve transparency about the cost of tariffs driving up prices so they can make informed purchasing decisions,” Stadelman said. “This is an important policy for both Illinois consumers and businesses.”
Legislative Status
Senate Bill 2957 is currently awaiting assignment to a committee in the Illinois Senate. If advanced, it is expected to spark debate over compliance costs, federal preemption concerns, and the broader role of states in responding to national trade policy.
