Lawmaker moves to stop businesses from using tariffs to hike prices

House Judiciary Committee Chairman José Pérez Cordero (Facebook via José Che Pérez Cordero)

By The Star Staff

House Judiciary Committee Chairman José “Che” Pérez Cordero announced on Monday the introduction of a comprehensive joint resolution that aims to curb the potential exploitation of tariff-related price increases by businesses.

The action comes in response to growing consumer apprehension as businesses are unjustly using the Trump administration’s recently implemented tariffs as a rationale for inflating prices on various goods and services, the lawmaker said.

The joint resolution, filed on Monday, specifically directs the Department of Consumer Affairs (DACO by its acronym in Spanish) to formulate and enforce the necessary mechanisms that would effectively prevent unjustified hikes in consumer prices. The proactive measure is intended to address the concerns voiced by consumers who fear that certain businesses may leverage the ongoing tariff situation to enhance their profit margins at the expense of consumers.

“In recent days, we have received a considerable number of complaints and grievances from consumers who are worried about the misuse of ‘federal tariffs’ as a pretext for increasing prices unjustly,” Pérez noted.

He emphasized that there is no valid reason for prices to rise at any point -- whether today, tomorrow, or in the foreseeable future -- regarding items found on store shelves or services provided. “This resolution is fundamentally designed to safeguard consumers from the actions of a minority of businesses that might seek to exploit the situation for their own financial gain,” Pérez said.

On April 2, President Trump officially declared “Liberation Day,” which marked a significant increase in tariffs on imported goods entering the United States as part of a broader strategy affecting international trade relations. Since that date, tariffs on products from various neighboring countries have surged by percentages ranging from 10% to 34%, contingent on multiple factors such as the type of product, its country of origin, and various criteria delineated in the executive orders issued by the Trump administration.

Pérez acknowledged the economic implications of the tariff increases, noting that they are likely to exert upward pressure on the prices of goods and services across the board.

“The operational logic of our market’s supply chain dictates that as business operational costs rise, so too do the prices of products and related services,” he noted. “However, it is critical to stress that this anticipated increase is not immediate; it will not occur within the next week or even the following week. It is entirely unacceptable for businesses to attempt to bolster their revenues based on unfounded fears of price hikes that have not yet come to pass.”

Furthermore, Pérez clarified that DACO possesses the authority to regulate and intervene in cases of any price increases deemed artificial under Regulation Number 9158 concerning commercial practices, which was established on Feb. 6, 2020. The regulation equips DACO with the necessary tools to ensure fairness in pricing and protect consumer interests in the wake of changing economic conditions.