Global Trade

Tariffs

A shipping port.

The issue

Tariffs are an important tool to address a variety of trade disputes and should be used in a strategic manner. They are intended to raise the cost of imported goods, making those products less competitive compared with domestically manufactured items, providing protection for domestic industries. As the new administration works to negotiate thoughtful resolutions to trade disputes and disparities with our trading partners to enhance competition and lower prices for American consumers, conducting a strategic review of trade policy is a crucial first step before imposing additional tariffs. At President Trump’s direction, federal agencies will begin reviewing the nation’s trade policies to ensure they are designed to deliver fair, balanced and effective outcomes for American workers and businesses.

Why it matters to retailers

Retailers strive to diversify their supply chains and provide greater value to customers, but they also rely on imported products to offer a variety of goods at affordable prices. Tariffs act as a tax on U.S. importers and are ultimately paid by consumers through higher prices. This forces retailers to choose between raising their prices or relying on already slim profit margins to absorb the increased cost of inventory.  

NRF President and CEO Matthew Shay appears on CNBC’s “Money Movers” to discuss tariffs and how they will impact the retail industry. Watch now

NRF’s position

Retailers are committed to working with President Trump and his administration to achieve his campaign promises, including strengthening the U.S. economy and ensuring that American families are protected from high inflation and benefit from lower prices. In this effort, NRF is committed to pursuing a trade policy that holds our trading partners accountable, enhances U.S. competitiveness and protects American households from inflationary price increases on everyday household goods, while continuing to lead the retail industry’s voice in these public policy debates.

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