WASHINGTON — The National Retail Federation (NRF) is warning that President Donald Trump’s sweeping new tariffs on goods from dozens of countries will lead to higher prices for U.S. consumers and could force some small retailers out of business.
In a statement Friday, NRF Executive Vice President of Government Relations David French urged the administration to pursue “binding trade agreements that truly open markets by lowering tariffs, not raising them.”
“Tariffs are taxes paid by U.S. importers and are eventually passed along to U.S. consumers. These higher tariffs will hurt Americans, including consumers, retailers and their employees, and manufacturers, because the direct result of tariffs will be higher prices, decreased hiring, fewer capital expenditures and slower innovation.”
The trade group states that while many retailers have thus far held the line on prices, the new duties will begin to show up in merchandise costs within weeks. NRF members report that the latest tariff round — which will impose rates as high as 50% on certain imports — has already sparked concern among small retailers about their ability to survive.
“We have heard directly from small retailers who are concerned about their ability to stay in business in the face of these unsustainable tariff rates,” French said.
The NRF’s comments come a day after Trump announced tariff increases on goods from major trading partners, including Canada, Brazil, India and Taiwan. Retailers fear the combination of slowing job growth and rising prices could dampen consumer spending heading into the crucial fall and holiday shopping seasons.
