President-elect Donald J. Trump’s proposed tariffs on foreign imports pose significant uncertainty for US retailers, who worry that higher prices will hurt sales and profit margins. Analysts predict some tariff threats may be negotiating tactics, while others believe broad-based tariffs could cause broader pain for importers.
US retailers like Ana Bettencourt carry 75,000 items in her store, many of which are imported from China. If tariffs go into effect, suppliers have warned that costs will be passed on to consumers. To prepare, some retailers are buying more inventory now, but holding too much stock can be costly and uncertain.
Industry experts say some companies may relocate supply chains out of China, but others argue it’s hard for businesses to move factories without causing disruptions to their own operations.
The US Chamber of Commerce has urged Trump to rethink his tariff plans, warning that broad and indiscriminate use could stifle growth at a time when the cost-of-living crisis is already pressing. A recent survey found that trade wars are the biggest concern among corporate executives.
As the situation unfolds, retailers will adapt to any changes in trade policies, but uncertainty remains a major challenge for US businesses.
Source: https://www.nytimes.com/2025/01/19/business/economy/trump-tariffs-businesses.html