Tariffs

The issue

President Donald Trump campaigned heavily on tariffs, proposing a universal baseline of 10%–20%. After taking office, he signaled interest in a broad range of potential tariff actions — targeting specific countries such as the EU, Canada and Mexico, as well as industry sectors like steel, aluminum and autos. While many anticipated immediate action on tariffs on Inauguration Day, the president instead signed the America First Trade Policy Memo, which outlined a series of reports intended to shape a future tariff strategy.

The administration has emphasized tariffs as a key economic and strategic tool, citing several objectives:

1. Leveraging tariffs as a negotiating tactic to bring other countries to the table;

2. Encouraging companies to diversify supply chains away from China;

3. Revitalizing U.S.-based manufacturing; and

4. Generating federal revenue.

Since then, the administration has moved forward with a series of tariff actions, including:

• IEEPA Border Security Tariffs (fentanyl and immigration)

  • Feb. 1 – Tariffs initially announced on Canada, Mexico and China

  • Feb. 4 – Tariffs delayed on Mexico and Canada for 30 days

  • March 4 – 25% tariffs enacted on Mexico and Canada; China tariffs increased to 20%

  • March 6 – President Trump announced that USMCA qualifying goods would not be subject to the IEEPA tariffs effective March 7

• Copper Tariffs

  • Feb. 25 – President Trump announced a Section 232 investigation into imports of copper Feb 25 – President announced a Section 232 investigation into imports of copper

• Timber and Lumber Tariffs

  • March 1 – President Trump announced a Section 232 investigation into imports of lumber, timber and derivative products

  • NRF filed joint comments opposing potential tariffs

• Steel and Aluminum Tariffs – Section 232

  • March 12 – 25% tariffs announced on steel and aluminum and derivative products

  • Previous exclusions and exemptions were ended

• Autos and Auto Parts – Section 232

  • April 3 – 25% tariffs on autos and auto parts

• Reciprocal Tariffs - IEEPA

  • April 2 – President Trump announced a 10% global tariff effective April 5 to be followed by a higher “reciprocal” tariff effective April 9 for a number of countries.

  • April 9 – President Trump amended his original executive order implementing a 90-day pause on the higher reciprocal tariffs for all countries except China; China tariffs were increased to 125% effective April 10.

• Semiconductor Tariffs – Section 232

  • April 1 - The Department of Commerce initiated a Section 232 investigation to determine the effects on the national security of imports of semiconductors and semiconductor manufacturing equipment (SME), and their derivative products.

• Pharmaceutical Tariffs – Section 232

  • April 1 – The Department of Commerce initiated a Section 232 investigation to determine the effects on the national security of imports of pharmaceuticals and pharmaceutical ingredients, including finished drug products, medical countermeasures, critical inputs such as active pharmaceutical ingredients, and key starting materials, and derivative products of those items.

• Critical Minerals – Section 232

  • April 16 – President Trump signed an Executive Order calling for a new Section 232 investigation to determine whether imports of processed critical minerals and their derivative products threaten to impair national security.

  • These goods include semi-finished goods (such as semiconductor wafers, anodes and cathodes) as well as final products (such as permanent magnets, motors, electric vehicles, batteries, smartphones, microprocessors, radar systems, wind turbines and their components, and advanced optical devices).

Why it matters to retailers

Retailers and other U.S. businesses rely on imported products — both component parts and finished goods — from a number of trade partners to provide consumers with a wide variety of affordable everyday goods. Tariffs are taxes paid by the U.S. importer and ultimately passed along to the consumer. There remains a great deal of uncertainty around the tariff actions, especially what happens after the 90-day pause for the reciprocal tariffs. Businesses are left with the unenviable task of trying to forecast and plan their orders for the holiday season while trying to deal with balancing rising costs, shifting consumer demand, and the possibility of long-term damage to their operations.

Small and medium-sized businesses will be disproportionately affected by the tariffs, with many saying they will have to raise prices or shut down. Unable to absorb the cost of increased tariffs, small business retailers would be forced to pass those additional costs along to their customers in the form of higher prices. But businesses aren’t the only ones who will pay for these tariffs: One estimate suggests these tariffs could result in a $3,800 tax increase per household — squeezing budgets and reshaping spending priorities.

NRF’s position

Retailers are committed to working with President Trump and his administration to advance shared goals — including strengthening the U.S. economy, keeping inflation in check, and ensuring American families benefit from lower prices. NRF supports a trade policy that holds our global trading partners accountable, enhances U.S. competitiveness and protects American households from inflationary pressures on everyday goods. We remain committed to leading the retail industry’s voice in these critical public policy conversations.

That said, while we agree there is a need to address longstanding trade imbalances and unfair practices, tariffs are just one tool in the toolbox — and they must be used strategically and selectively, with a clear end goal in mind. The sweeping “reciprocal” tariffs announced by the administration cannot — and should not — be implemented without congressional consultation and oversight.

We urge lawmakers to work with the White House over the next 90 days to scale back these tariffs and pursue a clear, consistent trade policy that puts American businesses, workers and consumers first — not last.