US Retailers Brace for Impact as Trump's 100% China Tariffs Loom

US President Donald Trump's threat to impose additional 100% tariffs on Chinese imports has raised alarm bells among retail and trade experts, who warn it could lead to further price increases and reduce demand.

The new taxes, which take effect Nov. 1, would come as shoppers and retailers enter the holiday shopping season – a period that typically accounts for a significant portion of annual retail sales – and would hit consumer confidence, particularly among low-income households.

The tariff threat could cause a “shipping pushback” as retailers try to beat implementation deadlines, said Blake Harden, managing director at Washington Council EY.

But it warned that accelerated imports could still be hit by tariffs upon arrival, leading some companies to delay orders or hold up shipments in China.

“This will have a ripple effect throughout the supply chain,” Harden said.

This year's trade dispute between the United States and key trading partners has clouded the economy, weighed on forecasts for this fiscal year and stoked uncertainty for both American consumers and businesses.

Prices for everything from clothing to televisions have risen in recent months as manufacturers and retailers grapple with the ever-changing tariff environment while trying to offset rising raw material and supply chain costs.

“This will add another layer of anxiety to an already anxious retail sector. Retailers have shown they can manage tariffs, but what is much more difficult to manage is the volatility of tariff rates,” said CFRA analyst Arun Sundaram.

“The good news is that most of the Christmas inventory is already in the US, so this latest rally should not disrupt the crucial shopping season. However, we could see prices rise next year if this rally continues.”

Retail stocks, including Abercrombie, Best Buy and Nike, fell on Friday after Trump's comments. But on Sunday, Trump posted on Truth Social: “Don't worry about China, everything will be fine! The highly respected President Xi just had a bad time.”

So far this year, retailers have issued mixed outlooks ahead of the holiday season. Target and Best Buy maintained their annual forecasts, while Walmart and Macy's raised theirs. Toy maker Mattel, however, lowered its expectations.

“Many companies were expecting this. The surprise is in the timing so close to the festive season,” said Ram Reddy, chief technology officer and head of retail, life sciences and enterprise solutions at Nagarro, a global digital engineering and consulting firm.

“I think this year's holiday season would be a good test of the diversification strategies that companies have been trying to implement over the past six months.”