NRF, RILA urge negotiations with Mexico and Canada, not tariffs
Responding to the sweeping new tariffs imposed on Canada and Mexico, two of the country’s leading retail groups called for negotiations and warned that the high tariffs would take a toll on U.S. consumers and businesses.
“The decision to impose tariffs on our North American neighbors and two of our largest trading partners is a significant measure,” said David French, executive VP of government relations, National Retail Federation. “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. As long as these tariffs are in place, Americans will be forced to pay higher prices on household goods.”
The Retail Industry Leaders Association sounded a similar note.
“The American people are counting on President Trump to bring down costs and grow the U.S. economy,” stated Michael Hanson, senior executive VP, public affairs, RILA. “Tariffs on Canada and Mexico put those goals in serious jeopardy and risk destabilizing the North American economy. Stacking tariffs on household goods will also raise costs on American families, millions of whom have struggled through the worst bout of inflation in 40 years."
The main thrust of Trump’s reasoning behind the tariffs was to address drug trafficking, but both Canada and Mexico say that they’ve made progress on those issues.
“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,” stated French. “We urge the Trump administration and our Canadian and Mexican counterparts to work together to quickly resolve our outstanding border security issues.”
In November, the NRF issued a report which found that the increased costs as a result of the proposed tariffs would be too large for U.S. retailers to absorb and would result in “prices higher than many consumers would be willing or able to pay.”
"The increases in tariffs resulting from Trump’s proposal would be dramatic,” the study said. “The proposed tariffs would have a significant and detrimental impact on the costs of a wide range of consumer products sold in the United States, particularly on products where China is the major supplier.”
