Trump Tariffs Loom Large for Retailers

Retail analysts and trade groups say President-elect Donald Trump’s proposed tariff policy could lead to higher prices for consumers, according to a variety of news reports, including this one from CNBC.com. Because of their use of Chinese suppliers, companies like Five Below, Crocs, Skechers, Amer Sports and American Eagle Outfitters are among those that could be forced to raise prices or take profit cuts, the news service reports.

In addition,  the CEO of e.l.f. Beauty told CNBC it could raise prices under the proposed hikes, which are far higher than those Trump imposed during his first presidency. (Note: tariffs are taxes imposed by one country on goods imported from another country.)

During his just-concluded presidential campaign, Trump said that he would impose a 10% to 20% tariff on all imports, including ones as high as 60% to 100% for goods from China. Experts have warned that such move could fuel higher prices on a wide range of Americans’ purchases, such as sneakers and party supplies.

“The adoption of across-the-board tariffs on consumer goods and other non-strategic imports amounts to a tax on American families,” National Retail Federation CEO Matthew Shay said in a statement released the day Trump accepted the voters’ verdict and opponent Kamala Harris conceded the race to him. “It will drive inflation and price increases and will result in job losses.”

Earlier this week, the NRF released a study on the impact of Trump’s proposed tariff increases and said they would lead to double-digit-percentage price spikes in nearly all six retail categories that the trade group examines. Those categories are apparel, footwear, furniture, household appliances, travel goods and toys.

As Trump does not officially take office until January, no formal imposition of higher tariffs is expected until then.

Click here for more from the CNBC report.