The National Retail Federation (NRF), America’s largest retail trade association, has voiced significant concern over the Trump administration’s recent decision to impose new tariffs on imports from numerous trading partners.
David French, the NRF’s Executive Vice President of Government Relations, stated that these tariffs are likely to increase anxiety and uncertainty among American businesses and consumers.
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“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,” French said.
Impact on small businesses and local communities
French highlighted that small retailers, which play a crucial role in local economies, will be disproportionately affected by the tariffs.
According to an NRF poll conducted by Morning Consult, 88% of voters acknowledge the importance of small businesses in their communities.
The implementation of these tariffs could therefore have adverse effects on local economies and small enterprises.
Tariffs as a tax on importers and consumers
“Tariffs are a tax paid by the US importer that will be passed along to the end consumer. Tariffs will not be paid by foreign countries or suppliers,” French said.
This contradicts the notion that foreign countries or suppliers bear the financial burden of tariffs.
The NRF warns that this could lead to increased prices for everyday goods, affecting American families directly.
Call for fair trade without economic uncertainty
In light of these concerns, the NRF is urging the administration to hold trading partners accountable and strive for fair trade practices without introducing economic uncertainty and higher prices for American families.
The organisation emphasises the need for advance notice and substantial preparation for the millions of U.S. businesses that will be directly impacted by the immediate implementation of these tariffs.
The NRF’s statement comes in response to President Donald Trump’s announcement of a comprehensive overhaul of the U.S. trade regime, which includes a baseline 10% tariff on all imported goods and higher reciprocal tariffs for countries with significant trade barriers to U.S. products.
Key trade partners such as China, Vietnam, Japan, South Korea, India, Taiwan, Thailand, and the European Union are facing steep increases. The new tariffs are set to take effect on April 5 for the baseline tariffs and April 9 for the reciprocal tariffs.
Economists have warned that these tariffs could lead to inflation, higher prices on essentials like cars and clothing, slower economic growth, and potentially a global recession.
Allies including the EU, China, and Canada have criticised the move and are preparing countermeasures.
The NRF’s concerns reflect broader apprehension within the retail industry about the potential negative impacts of the new tariffs on businesses and consumers alike.
“We encourage President Trump to hold trading partners accountable and restore fairness for American businesses without creating economic uncertainty and higher prices for American families,” French said.
