Retail trade groups: 25% tariffs a ‘crushing’ burden for American families

Saying 25% tariffs on goods from Mexico and Canada would hurt American families, retailers and apparel importers on Tuesday called on the Trump administration to open talks on border issues to avoid a devastating trade war with two of the United States’ largest business partners.

The U.S. also announced another 10% tariff on imports from China, for a total 20% levy on exports from that country.

The latest move by Washington prompted a round of retaliatory tariffs by China of 15% on a variety of U.S. exports. Canada announced plans for tariffs on $100 billion worth of U.S. goods over the next 21 days, while Mexico will roll out its own levies on Sunday.

The delay by Canada and Mexico could be an indication that leaders of those countries see reason for optimism that negotiations could blunt tariffs’ long-term effects.

“The decision to impose tariffs on our North American neighbors and two of our largest trading partners is a significant measure,” said David French, National Retail Federation executive vice president of government relations, in a release. “Unfortunately, it is one that will only hurt hardworking Americans and the businesses that strive to provide customers with the products they want and need on a daily basis.

“Tariffs are just one tool at the administration’s disposal to achieve a secure border, and we urge it to explore other options to accomplish the same goals. As long as these tariffs are in place, Americans will be forced to pay higher prices on household goods.

“We urge the Trump administration and our Canadian and Mexican counterparts to work together to quickly resolve our outstanding border security issues.”

Target (NYSE: TGT) Chief Executive Brian Cornell on Tuesday warned that U.S. tariffs on imports from Mexico would likely increase prices for consumers at checkout.

The tariffs represent $301 billion in extra charges on imports, said Dan Anthony, president of U.S. research firm Trade Partnership Worldwide, in a LinkedIn post. That’s a fivefold increase in average tariffs, from 2.4% to 11.7%.

“These new tariffs are compounding rapidly. Amid other hints at hitting hard on the European Union and other allies as well … each [new round of] tariffs snowballs into a growing — and potentially crushing — burden on American businesses and hardworking American families,” said Steve Lamar, American Apparel & Footwear Association president and chief executive, also in a statement. “Uncertainty and instability are corrosive, undermining the vitality of our consumer-driven economy, and the 3.5 million American jobs created by our industry.”

Lamar called on United States Trade Representative Jamieson Greer and Commerce Secretary Howard Lutnick to start discussions on “guardrails” for “smart trade policies” that align benefits for U.S. exports and imports.

He also urged Congress “to assert its constitutionally mandated roles on tariffs to ensure these trade policies can achieve their objectives in a clear manner and to reactivate and renew beneficial trade agreements and trade preference programs that leverage U.S. economic objectives while promoting predictable market access.”

Some businesses are shifting supply chains to adapt to the new tariffs. Rapido, a Canadian importer of model railroad products, on Tuesday announced plans to open a warehouse in Buffalo, New York. China shipments received there would be subject only to 20% tariffs as opposed to 25% charges if merchandise had to be trucked across the border to the U.S. market.

Related coverage:

Industrial outlook darkens ahead of tariffs

Check Call: Tariffs finally arrive in US supply chains

Tariff fears evident in February supply chain data

The Light Load: I for one will not starve if tariffs fry Canadian ‘bacon’

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