Latest Tariff News Sparks Concern Among Retailer Groups
NATIONAL REPORT — Three months into his second term, President Donald Trump leveled tariffs on goods from many of the United States' trade partners. How they will affect the U.S. consumer remains to be seen.
On April 2, Trump announced a 10% baseline tax on imports from all countries and higher tariff rates on dozens of nations that run trade surpluses with the U.S., as The Associated Press reported.
With the action, Trump fulfills a campaign promise to level the playing field with trade partners, but the move caused some concerns among the retail community and calls into question how the tariffs will affect consumers.
"More tariffs equal more anxiety and uncertainty for American businesses and consumers. While leaders in Washington may not care about higher prices, hardworking American families do," said David French, National Retail Federation (NRF) executive vice president of government relations.
"Eighty-eight percent of voters say that small businesses play an important role in their local economy, according to an NRF poll conducted by Morning Consult. These tariffs will have a disproportionate impact on local communities and will be particularly harmful to small retailers," French added.
[Read more: Food-Focused Retailers Need to Prepare for Tariffs' Effects on Foodservice]
Trump's tariffs moves came on the same day that NRF forecasted that retail sales during 2025 will grow between 2.7% and 3.7% year over year to between $5.42 trillion and $5.48 trillion. The 2025 sales forecast compares with 3.6% annual sales growth of $5.29 trillion in 2024. This year's forecast is also in line with the 10-year pre-pandemic average annual sales growth of 3.6%, the organization said during NRF's fifth annual "State of Retail & the Consumer" virtual event on the health of American consumers and the retail industry.
"Tariffs are a tax paid by the U.S. importer that will be passed along to the end consumer. Tariffs will not be paid by foreign countries or suppliers," French continued. "Even more so, the immediate implementation of these tariffs is a massive undertaking and requires both advance notice and substantial preparation by the millions of U.S. businesses that will be directly impacted."
He added NRF encouraged President Trump to "hold trading partners accountable and restore fairness for American businesses without creating economic uncertainty and higher prices for American families."
The Retail Industry Leaders Association (RILA) also took issue with the impact tariffs will have on the U.S. consumer.
"The American people are counting on President Trump to grow the U.S. economy and end inflation. Unfortunately, the president's plan for universal tariffs on household goods — including clothing, groceries, home goods and school supplies — will raise costs on every American family. The president's plan is not a targeted attempt to protect American innovation or national security but will hit every family's budget. Americans cannot afford another round of price increases," said Michael Hanson, RILA senior executive vice president, public affairs.
"These newly announced tariffs — and the expected retaliatory tariffs on American businesses — risk destabilizing the U.S. economy, undermining the goals of bolstering domestic manufacturing and growth," Hanson added. "We urge the president and his economic team not to abandon the pro-growth policies that powered his first term — namely the Tax Cut and Jobs Act. Before lasting damage is done to the economy and family budgets, we urge the White House to reconsider its course."