US President Donald Trump’s threat of a 100% additional tariff on Chinese goods has created a retail sector alarm across the country. Experts warn that this step could trigger price increases and weaken consumer demand.
The new tariffs are scheduled to take effect on November 1 — just as the holiday shopping season begins.
This period is known as the peak time for annual sales in the US.Blake Harden, an EY executive at the Washington Council, stated that retailers might try to “bring shipments forward” before tariffs go into effect, but these goods could still be subject to taxes, adding, “This will have repercussions throughout the entire supply chain.”
Economic Uncertainty is Increasing
Tensions between the US and its trading partners are overshadowing the economic outlook this year.
With price increases across many products, from clothing to televisions, companies are struggling with both raw material costs and supply chain pressures. **/wp:paragraph –>** **/wp:paragraph –>** CFRA analyst Arun Sundaram said, “This will add a new layer of concern to an already tense retail sector,” adding that most holiday season stocks are already in the U.S., so the short-term effects may be limited. However, he warned, “If this climb continues, prices could rise again in 2026.”Stocks Fall, Consumer Concern
Following Trump’s remarks, Abercrombie, Best Buy and Nike shares fell on Friday. However, Trump tried to calm the markets by posting on the Truth Social platform, “Don’t worry about China, everything will be alright!”
Meanwhile, retail giants Target and Best Buy kept their expectations unchanged, while Walmart and Macy’s revised their annual forecasts upwards.
Toy giant Mattel has lowered its sales expectations.Nagarro executive Ram Reddy said, “The real surprise is that this decision was made so close to the holiday season,” emphasizing that the diversification strategies that companies have implemented in recent months will be tested during this period.
