On Tuesday, President Trump imposed (and days later, partially and temporarily walked back) 25% tariffs on Mexican and Canadian imports and doubled the 10% Chinese import tariffs enacted last month, a move that garnered significant retail industry pushback.
The tariffs sparked a trade war, swiftly met by retaliatory tariffs from Canada and China, and the promise of tariffs from Mexican President Claudia Sheinbaum. These tariffs on imports and exports threaten to raise prices across many consumer goods categories, including alcohol, apparel, agricultural products, appliances, and toys. Retailers like Target and Best Buy have already warned of tariff-related hikes.
A slew of retail industry trade associations have voiced concerns over tariffs this week, with many urging reconsideration, renegotiation, or carve-outs for certain industries. Since Tuesday’s announcement, Trump is implementing a pause on tariffs for Mexican and Canadian goods outlined in the USMCA agreement, which includes agricultural products and textiles and apparel, until April 2.
David French, the National Retail Federation’s EVP of government relations, called the tariffs a “tool” the administration is using to “achieve a secure border.”
“We urge [the administration] to explore other options to accomplish the same goals,” he said. “As long as these tariffs are in place, Americans will be forced to pay higher prices on household goods.”
Michael Hanson, Retail Industry Leaders Association’s SVP, public affairs, said the tariffs “risk destabilizing the North American economy,” noting that retailers are prepared to work with Trump on “championing tax policies that support retail workers, communities, and consumers."
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The American Apparel and Footwear Association President and CEO Steve Lamar noted that the tariffs would create a “potentially crushing burden” on US businesses and consumers, asking Congress to “reactivate and renew beneficial trade agreements.”
The Agricultural Retailers Association and the Fertilizer Institute released a joint statement noting the taxes on fertilizer imports like potash would raise prices for farmers and eventually elevate grocery costs for consumers, asking Trump for a “strategic carve out.” The Toast not Tariffs Coalition—a group of 52 associations, including NRF, representing the US alcohol industry—called for lifting tariffs for distilled spirits and wine. Included in the USMCA, some fertilizers and spirits and wine are now exempt from tariffs, per Thursday’s amendment.
Across other organizations: The American Frozen Food Institute, the National Farmers Union, Footwear Distributors and Retailers of America (which cited a YoY footwear sales drop of 26.2%), and a number of packaging groups expressed concerns over the tariffs this week. In prior weeks, groups like the Personal Care Products Council, the Organic Trade Association, and the Consumer Brands Association have spoken out against them.