"Last year, tariffs kicked in at their highest rate since the Great Depression, with the United States' effective tariff rate hitting above 17% in August. The beginning of the year started with chaos, as, seemingly every week, there was an announcement of some new tariff that would be levied against China or Mexico or Canada. Then came "Liberation Day," when President Donald Trump issued " reciprocal tariffs" on more than 180 countries and territories."
"But, that's provided little comfort to the retail companies that have had to navigate the whiplash of tariffs this year. Even some companies that manufacture their products in America, which, in theory, were supposed to benefit from tariffs, are struggling to manage costs as their raw materials are getting hit with tariffs. Not every industry experienced negative effects from tariffs. Many resale companies, for instance, reported record numbers of new customers this year as customers became more price-sensitive due to tariffs."
Tariffs peaked in 2025, with the United States' effective tariff rate rising above 17% in August and frequent new tariff announcements targeting China, Mexico, and Canada. A presidential move imposed reciprocal tariffs on over 180 countries, prompting global negotiations and subsequent reductions from initially proposed levels. Retailers faced operational whiplash and rising costs; U.S.-manufacturing firms struggled as raw materials were hit with tariffs. Resale businesses saw growth as price-sensitive consumers drove record new-customer volumes. Individual retailers showed mixed outcomes, with some reporting strong revenue gains. Legal and policy uncertainty, including potential Supreme Court action, leaves the retail outlook unpredictable.
Read at Digiday
Unable to calculate read time
Collection
[
|
...
]