According to a survey conducted by Morning Consult for NRF, 76% of voters are concerned about the impact of tariffs on price. Read more.
President Donald Trump campaigned heavily on tariffs, proposing a universal baseline of 10%–20%. After taking office, he signaled interest in a broad range of potential tariff actions — targeting specific countries such as the EU, Canada and Mexico, as well as industry sectors like steel, aluminum and autos. While many anticipated immediate action on tariffs on Inauguration Day, the president instead signed the America First Trade Policy Memo, which outlined a series of reports intended to shape a future tariff strategy.
The administration has emphasized tariffs as a key economic and strategic tool, citing several objectives:
Leveraging tariffs as a negotiating tactic to bring other countries to the table;
Encouraging companies to diversify supply chains away from China;
Revitalizing U.S.-based manufacturing; and
Generating federal revenue.
The administration has moved forward with increased global tariffs. For a deeper look at the current state of tariffs impacting retailers, visit The Budget Lab at Yale.
NRF President and CEO Matthew Shay joins ‘Money Movers’ to discuss the impact of tariffs on the holiday buying season and much more. Watch now.
Small businesses, which make up 98% of retailers and support more than 13 million American jobs, are particularly vulnerable to tariffs. Learn more.
Retailers and other U.S. businesses rely on imported products — both component parts and finished goods — from a number of trade partners to provide consumers with a wide variety of affordable everyday goods. Tariffs are taxes paid by the U.S. importer and ultimately passed along to the consumer. There remains a great deal of uncertainty around the tariff actions, especially what happens after the 90-day pause for the reciprocal tariffs. Businesses are left with the unenviable task of trying to forecast and plan their orders for the holiday season while trying to deal with balancing rising costs, shifting consumer demand, and the possibility of long-term damage to their operations.
Small and medium-sized businesses will be disproportionately affected by the tariffs, with many saying they will have to raise prices or shut down. Unable to absorb the cost of increased tariffs, small business retailers would be forced to pass those additional costs along to their customers in the form of higher prices. But businesses aren’t the only ones who will pay for these tariffs: One estimate suggests these tariffs could result in a $3,800 tax increase per household — squeezing budgets and reshaping spending priorities.
National Retail Federation President and CEO Matthew Shay joins Fox Business to discuss tariff tensions and the impact on small businesses. Watch now.
Retailers are committed to working with President Trump and his administration to advance shared goals — including strengthening the U.S. economy, keeping inflation in check, and ensuring American families benefit from lower prices. NRF supports a trade policy that holds our global trading partners accountable, enhances U.S. competitiveness and protects American households from inflationary pressures on everyday goods. We remain committed to leading the retail industry’s voice in these critical public policy conversations.
That said, while we agree there is a need to address longstanding trade imbalances and unfair practices, tariffs are just one tool in the toolbox — and they must be used strategically and selectively, with a clear end goal in mind. The sweeping “reciprocal” tariffs announced by the administration cannot — and should not — be implemented without congressional consultation and oversight.
We urge lawmakers to work with the White House over the next 90 days to scale back these tariffs and pursue a clear, consistent trade policy that puts American businesses, workers and consumers first — not last.
