Trade frictions dim US holiday shopping spirit

Added On December 3, 2019

U.S. retailers are ready to embrace the holiday shopping season.
But the traditionally lucrative month has been overshadowed by economic uncertainties, as both U.S. retailers and consumers face additional U.S. tariffs on Chinese imports.
Economy Report has more.
According to the U.S. National Retail Federation, holiday sales normally represent about 20 percent of annual retail sales. That figure can sometimes reach as high as 30 percent for some retailers.
But this year, additional tariffs are forcing manufacturers to raise their prices and retailers are struggling to offset higher costs.
The U.S. government imposed 15 percent additional tariffs on some 110 billion U.S. dollars worth of Chinese imports on September 1st despite strong opposition. The tariffs cover a wide range of consumer goods including clothing, footwear, food and books.
American businesses and consumers paid 7.1 billion dollars in tariffs in September, up 59 percent year-on-year.
According to the Fed, companies affected by tariffs are inclined to pass on increased costs. Experts expect retail prices will rise at a faster pace over the next 12 months.