Trade wars between the United States and its biggest trade partners—China, Canada and Mexico—kicked off on Tuesday, with President Donald Trump imposing substantial tariffs on the three countries.
Canada and Mexico now face a 25% tariff on all goods imported into the United States, and China received an additional 10% tariff, doubling the import tax imposed a month ago.
Leaders in all three countries have threatened retaliatory tariffs on goods imported from the United States, and China has filed a lawsuit with the World Trade Organization, according to the Wall Street Journal.
The tariffs have both retailers—including convenience-store retailers—and consumers worried, with 80% of shoppers saying they are concerned about the effect it will have on their finances, according to a survey by data analytics company Numerator.
Meanwhile, the National Retail Federation weighed in on Monday, with a message from NRF Executive Vice President of Government Relations David French calling the tariffs a “significant measure … that will only hurt hard working Americans and the businesses that strive to provide customers with the products they want and need on a daily basis.”
“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. As long as these tariffs are in place, Americans will be forced to pay higher prices on household goods,” French said.
French added that NRF is urging the Trump administration and leaders in Canada and Mexico “to work together to quickly resolve our outstanding border security issues.”
“The food industry has very thin profit margins—just 1.6% for retailers and 7.5% for food manufacturers,” according to a statement from FMI. “Although food retailers have long done everything in their power to keep food prices as low as possible for their customers, faced with significant new cost pressures from tariffs, the food industry will have little choice but to pass on these import taxes to remain in business and continue serving customers.”
The tariffs come a month after President Trump threatened the import taxes but pulled back after receiving assurances from leaders in Mexico and Canada that they would increase security at U.S. borders to stop the supply of fentanyl illegally entering the country.
Consumer awareness of the tariffs has increased substantially from a few months ago, according to Numerator, which reported that 83% said they have an awareness of the issue, up 30 percentage points from December when awareness was at 53%.
Despite the increased awareness, many shoppers still have a slim understanding of tariffs. Numerator’s survey showed that only about a third of shoppers (34%) say they fully grasp how tariffs affect prices. Another 48% have a general idea of how tariffs affect prices but lack details, and 17% said they have little-to-no understanding of the issue.
The survey also showed that 64% of consumers are worried about tariffs raising the price of everyday goods, 44% are worried about product availability and 25% are concerned that the tariffs will negatively affect economic growth.
Grocery prices were the biggest concern for those surveyed, with 55% citing a concern with tariff-related price increases, followed by gasoline at 41%, household goods at 34% and medical supplies at 29%.
More than three-quarters (76%) of shoppers surveyed plan to change their shopping habits to brace for higher prices. Twenty-three percent plan to look for sales or coupons, another 23% plan to stock up ahead of price hikes and 22% plan to delay purchases until the tariffs are lifted, Numerator reported.
This story first appeared inCSP Daily Newssister publicationSupermarket News.
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