Leading US retail and apparel organizations, including the National Retail Federation (NRF) and the American Apparel & Footwear Association (AAFA), have cautiously welcomed the 90-day US-China tariff pause. While the temporary measure has been acknowledged as a positive step, experts warn it does little to address lingering trade tensions and structural challenges.
Responding to the announcement of the tariff freeze, NRF President and CEO Matthew Shay highlighted its importance for retailers preparing for the upcoming holiday season. He remarked that the move provides “some short-term relief,” and noted, “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.”
However, Shay stressed the importance of ongoing negotiations, urging both nations to tackle unresolved trade issues. “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,” he added.
The AAFA shared a similar perspective, emphasizing the difficulties the industry still faces despite the US-China tariff pause. “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 also pointed to shipping disruptions caused by tariff uncertainty, warning that they could exacerbate price hikes 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 90-day US-China tariff pause includes reducing US tariffs on Chinese imports to 30 per cent and China’s tariffs on American goods to 10 per cent starting May 14. Although the move is intended to provide breathing space for further negotiations, industry leaders continue to call for a comprehensive resolution to the ongoing issues affecting global trade.
