Responding to the 90-day tariff pause announced by both governments, NRF president and CEO Matthew Shay said the move offers “some short-term relief” for retailers preparing for the critical holiday season. “This is a critical first step that lays the foundation for substantial progress toward achieving fair and balanced trade relationships with both China and our other trade partners around the world,” Shay noted.
However, he urged both sides to continue negotiations. “We urge the administration and our Chinese trade partners to continue discussions to address the ongoing issues, work to remove the remaining national security tariffs, and provide long-term stability between the two largest global economies,” Shay added.
The AAFA echoed this sentiment but highlighted the ongoing challenges for the industry. “The 90-day pause is welcome and may temporarily help unstick the effective trade embargo that has been in place with respect to US/China trade since April 9. Sadly, the residual 30 per cent tariff, stacked on top of the existing Section 301 and 'most favoured nation' (MFN) tariffs, will still make for an expensive back to school and holiday season for most Americans,” said AAFA president and CEO Steve Lamar.
Lamar warned that shipping disruptions caused by tariff uncertainty could further inflate prices in the coming months. “If freight rates spike due to the tariff-induced shipping disruptions—which will take months to unwind—we could see costs and prices creep up even further. What’s needed now is a long-term deal—not just with China but with all our trading partners—so we can predictably make long term trade, investment, and sourcing decisions," he added.
The US and China have agreed to a 90-day pause in their ongoing tariff dispute, reducing US tariffs on Chinese imports to 30 per cent and China’s tariffs on US goods to 10 per cent starting May 14. The move aims to provide breathing space for continued trade negotiations.
ALCHEMPro News Desk (KD)
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