New Tariffs Will Hurt Consumers, Retail Trade Groups Say
Leading retail trade groups are speaking out against a new wave of tariffs being proposed by the Trump Administration that will impact all imported goods.
According to the Washington Post, in addition to the broad 10% tax on goods coming into the U.S., the move also includes an additional import tax aimed at 60 countries Trump and his advisers say maintain the most unfair barriers against products made in the U.S.
The Wall Street Journal said the across-the-board 10% tariffs will go into effect on April 5. For those nations labeled as “bad actors” on trade, tariffs will be higher. This includes 34% on China, 24% on Japan, and 20% on the European Union, which will go into effect on April 9.
The move was immediately met with pushback from retail trade groups.
In a press release from the National Retail Federation entitled “More Tariffs Lead to Higher Costs for American Families,” David French, the NRF’s executive vice president of Government Relations, said, “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.”
Pointing to an NRF Poll conducted by Morning Consult, French noted that 88% of voters say small businesses play an important role in the local economy, and that tariffs will have a disproportionate impact on local communities and harm small retailers.
“Voters do not see tariffs as helping vulnerable communities including blue collar workers, rural communities, families with young children, low-income households, the elderly and farmers,” he said. “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.”
Leslie Sarasin, president and CEO of FMI — The Food Industry Association, raised concerns that the latest tariff announcement could bring rising prices, squeeze household budgets, and reduce competitiveness for American companies relative to international competitors.
“The uncertainty and inflationary pressures created by reciprocal tariffs are a major worry for American consumers and our food industry member companies that operate on slim 1.6% retail and 7.5% food manufacturing net margins,” she said.
According to FMI’s March Grocery Shopper Snapshot survey, 54% of grocery shoppers cited increased tariffs on imported food as their biggest concern related to the price of groceries, an increase of 5% from January.
“Our food system is intricately linked with global markets − including products not grown in the United States like bananas or seasonal items − which helps keep prices down while providing American shoppers year-round access to safe, nutritious food,” Sarasin said.
