2025 brings a new administration and a new Congress, with President Trump elected to his second term and the Republican party securing control of both chambers in Congress.
Browse NRF's top policy priorities for the coming year.
Elections are often focused on the economy, and this one was truly a ‘cost-of-living election.’ While inflation eased last year, many Americans continue to face challenges as the economy recovers. The National Retail Federation is eager to work with the new administration and Congress to advance policies and regulatory reforms that will enhance American competitiveness, create jobs and strengthen consumers.
In particular, retailers have identified four policy priorities that can help achieve the administration’s goal of creating a stronger and healthier U.S. economy.
The 2017 Tax Cuts and Jobs Act has been enormously successful in driving increased investment, higher wages and job creation across America. For the retail industry, reducing the corporate tax rate from 35% to 21% has enabled retailers to build more stores and distribution centers, grow their workforces, enhance wages and benefits, and remain competitive on consumer prices.
As Congress works to extend pro-growth tax policies in the coming months, NRF will continue to advocate for preserving the competitive 21% corporate tax rate and rejecting any proposals to raise it.
The new Trump administration was expected to implement significant tariff increases on its first day. Instead, President Trump signed an Executive Order — “America First Trade Policy” — calling for a review of U.S. trade policy and seeking recommendations from key agencies to address a wide range of grievances.
The administration’s renewed focus on trade policy aims to hold U.S. trading partners accountable through the imposition of broad-based tariffs. NRF supports President Trump’s initial actions to conduct a thoughtful review of current trade policies to ensure relationships with our trading partners are fair and equitable before moving forward with proposed tariffs on imports from our trading partners, including China, Mexico, Canada and the European Union. The use of tariffs should be strategic with clear policy goals behind them. The administration should avoid tariffs on everyday consumer goods.
Tariffs are taxes paid by the U.S. importer, not by a foreign country or the foreign exporter. The increase in costs for U.S. businesses eventually finds its way to consumers in the form of higher prices. A recent study released by NRF examined the economic impact of a proposed universal tariff (10%-20% on all imports) and the proposed 60%-100% tariff on imports from China for six key retail categories (apparel, toys, furniture, household appliances, footwear and travel goods). The study concluded that in the most extreme scenario, total average tariffs would exceed 50% for all categories examined. That would result in price increases to a wide range of consumer goods; NRF estimates American consumers could lose between $46 billion and $78 billion in spending power each year if the proposed tariffs are implemented.
NRF shares the president’s view that China and other trading partners are obligated to live up to their trade commitments and commend the approach of thoroughly reviewing current trade relationships before levying tariffs that could negatively impact his administration’s goal of growing the economy and attacking the high cost of living. We strongly encourage the administration to ensure new trade policies are effective, targeted and benefit American businesses, workers and consumers.
Every time a retailer accepts a credit card payment for a sale, they pay a percentage of the transaction amount to the credit card networks and card-issuing bank. This fee is known as a “swipe fee” and can range from 2%-4%. While it sounds small on a per-transaction basis, over $172 billion was collected in swipe fees in 2023.
Credit and debit card swipe fees cost retailers and their customers more than $170 billion a year. Learn more.
Retailers have been sounding the alarm on swipe fees for decades because not only are they a hidden tax — they are growing. Each year brings record levels of swipe fees collected from U.S. merchants; these fees are now the second highest operating cost after labor for many retailers. Consumers aren’t spared from rising swipe fees either, since thin retail margins mean that merchants are forced to pass along some of the costs in the form of higher prices for everything.
In fact, the average American family currently pays $1,100 a year in higher prices due to swipe fees, and the blame for these inflationary fees points directly at the lack of competition in the credit card routing market.
The credit card market is dominated by Visa and Mastercard, two networks that have created a duopoly that allows them to raise and implement merchant payments fees without any competitive pushback. The absence of competition leaves no incentive for the major networks to work with merchants to negotiate fairer swipe fees. Attempts to litigate the issue in courts have been stalled as well. NRF strongly believes a law to require competition is needed, and Congress will have the opportunity to provide relief to American businesses and consumers by passing the Credit Card Competition Act.
The CCCA is a bipartisan, free market-based legislative fix to arbitrarily high swipe fees. The bill would inject competition into the credit card routing market and finally give merchants a choice in which network routes their transactions based on fees, security and service. The CCCA is estimated to save businesses $16 billion each year in swipe fees. The highly competitive nature of the retail industry means these savings will be shared with consumers while also allowing retailers to further invest and grow their business.
Addressing elevated levels of theft, violence and organized retail crime remains a top priority for retailers in 2025. Progress has been made in tackling this pervasive issue, with 28 states establishing criminal laws focused on either those engaged in ORC or enhanced penalties for repeat offenders.
Organized retail crime is on the rise. Join us and tell Congress to act now.
Voters spoke loudly in several states about the need to curb these crimes. A federal solution, however, is still needed to fully manage the scope and complexity in which these crimes have evolved. NRF looks forward to working with our champions in Congress to reintroduce and advance the Combating Organized Retail Crime Act.
ORC — the large-scale theft of goods and merchandise with the intent to resell for profit — has taken many forms over recent years. Retailers report elevated levels of shoplifting, ecommerce theft and fraud, return fraud, warehouse robberies and cargo theft, among others. The financial impact of organized retail crime is significant; more concerning for retailers is the violence often associated with these crimes that threaten the safety of employees and customers.
Retailers are working with law enforcement agencies to report and properly account for the level of crime occurring across the communities they serve, but that partnership in its current form cannot adequately address modern retail crimes.
Retail crimes impact more than just retailers and their customers. Criminal enterprises often use the profits from ORC operations to fund other, more illicit activities such as drugs, guns and human smuggling.
NRF continues to advocate for federal policy that provides law enforcement agencies with greater tools, resources and coordination at all levels of government to better apprehend and prosecute retail criminal rings.