PERSPECTIVES

On April 5, the National Retail Federation, “the world’s largest retail trade association,” felt compelled to explain “Five Things To Know About Tariffs.” 

Among the first things they explain is who actually pays the tariff.

What is a tariff? 

• “Tariffs are a tax on goods imported into the United States and are paid for by the U.S. importer.”

• “When tariffs are enacted, retailers are forced to choose between raising their prices or relying on already slim profit margins to absorb the increased cost of inventory.”

• “Many small retailers are indirect importers and rely on other companies to import the products that they sell. These indirect importers [that is, small retailers] have even less ability to shift their supply chains to mitigate tariff costs.”

This sums up pretty well the challenges retailers are living with. But...