President Donald Trump’s threat to impose new 100% tariffs on Chinese imports has set off alarm bells among retail and trade experts, who warn that the move could drive up prices and dampen consumer demand just as the holiday shopping season begins.
The proposed levies, slated to take effect on November 1, would coincide with the busiest time of year for retailers and shoppers, a period that typically accounts for a significant share of annual sales.
Analysts say the threat could hit lower-income households particularly hard and weigh on overall consumer sentiment.
Blake Harden, managing director at Washington Council EY, told Reuters the tariff announcement may trigger a “pull-forward of shipments” as retailers rush to import goods before the new duties take effect.
However, he cautioned that “accelerated imports might still be hit by duties upon arrival,” which could prompt some firms to delay or hold shipments in China. “This will have ripple effects throughout the supply chain,” Harden said.
The renewed trade tensions between the US and key global partners have cast a shadow over the economy, dampening fiscal forecasts and heightening uncertainty for both consumers and businesses.
Prices for a wide range of goods, from clothing to electronics, have already risen in recent months as companies struggle to navigate shifting tariffs, rising commodity costs, and ongoing supply chain challenges.
Retail stocks including Abercrombie, Best Buy, and Nike fell on Friday following Trump’s remarks. Over the weekend, the former president attempted to calm concerns on his Truth Social account, writing: “Don’t worry about China, it will all be fine! Highly respected President Xi just had a bad moment.”
So far this year, retailers have issued mixed guidance heading into the holidays. Target and Best Buy have maintained their annual forecasts, while Walmart and Macy’s raised theirs. Toymaker Mattel, however, cut its expectations.
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