Retail Federation Warns of Higher Prices Amidst Trump's Reciprocal Tariff

The National Retail Federation (NRF) is warning that President Trump's new reciprocal tariffs will lead to higher prices for American consumers,The Hill reports. The president signed a memorandum on Thursday authorizing the US to impose tariffs on foreign trading partners, citing unfair practices.

"While we support the president’s efforts to reduce trade barriers and imbalances, this scale of undertaking is massive and will be extremely disruptive to our supply chains," said David French, NRF's executive vice president of government relations, in a statement. He continued, "It will likely result in higher prices for hardworking American families and will erode household spending power. We encourage the president to seek coordination and collaboration with our trading partners and bring stability to our supply chains and family budgets."

Trump's memorandum calls for customized tariffs on each country based on five criteria: tariffs imposed on US products, unfair taxes, costs to American businesses and consumers, exchange rates, and other practices deemed unfair by the US Trade Representative's office. The administration will now begin a review process to implement these tariffs.

French noted that consumer sentiment is already declining due to trade war uncertainty. "The University of Michigan monthly consumer sentiment index continues to decline, suggesting consumers are alarmed about trade war uncertainty," he said.

Several Democrats have criticized Trump's tariff plan, arguing that it will increase everyday costs for Americans and escalate tensions with US adversaries. The Wall Street Journal's editorial board also condemned the plan, calling it "the dumbest in history."