Corporate Silence on Tariffs Draws Criticism
Retail executives across corporate America are reportedly avoiding public criticism of ongoing trade policies due to fears of retaliation, according to industry analysis. Mark Cohen, former CEO of Sears Canada and current director of retail studies at Columbia Business School, characterized this silence as “a form of cowardice” in recent comments to Fortune.
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“Few in industry are speaking out loud about this, for fear of retaliation,” Cohen stated, noting that business leaders have been privately contacting him in panic about rewriting forecasts and protecting margins. Sources indicate that retailers are struggling with sudden supply chain disruptions while trying to maintain consumer pricing.
Holiday Season to Reveal True Tariff Impact
The temporary relief that retailers experienced during back-to-school season has ended, analysts suggest. Companies had previously stockpiled inventory and adjusted product quality to mitigate initial tariff effects, but the approaching holiday season will showcase the full financial burden.
“The party is over now,” Cohen emphasized. “The goods you see on a shelf in advance of this holiday season will have been fully burdened by tariffs.” The report states that unlike traditional taxes applied at point of sale, tariffs impact products long before they reach retail shelves, creating cascading effects throughout supply chains.
Widespread Economic Consequences Emerging
While large retailers like Walmart may withstand the pressure, small-to-medium manufacturers and retailers face what Cohen described as a “deadly COVID-19-like-crisis.” According to the analysis, tens of thousands of smaller importers are experiencing liquidity crises as they must now front tariff payments before goods clear customs.
Recent market trends show even major value retailers are adjusting strategies. IKEA recently ended its tradition of maintaining low prices, with one bedroom set increasing by $90 within two months. Industry developments suggest this indicates broader market pressures affecting all segments.
Consumer Impact and Economic Outlook
Bank of America data reportedly shows consumers spent 0.6% more year-over-year in September, but analysts suggest this acceptance may wane as holiday shopping begins. S&P analysis indicates companies will incur at least $1.2 trillion in additional costs this year due to tariffs, with large retailers absorbing $907 billion of that impact.
“What Trump has done is created a burden on every element in the supply chain,” Cohen stated. He estimates approximately two-thirds of tariff costs, roughly $592 billion, are being passed to consumers through price increases.
Global Retaliation and Systemic Risks
The China–United States trade war has triggered a retaliatory spiral that extends beyond bilateral relations, according to reports. China’s restrictions on rare-earth minerals, Canada’s responses to timber and auto tariff measures, and European countermeasures are creating compound challenges for U.S. manufacturers.
Cohen warned that the combination of inflation, supply chain disruption, labor market shocks, and political retaliation could push the U.S. toward another economic crisis. “Americans are going to get slammed,” he noted, referencing that 70% of Americans already live paycheck to paycheck.
Industry Response and Future Projections
The business community’s quiet approach to lobbying concerns industry observers who believe public engagement is necessary. Cohen suggested that private appeals to the administration have proven ineffective while the broader retail industry remains vulnerable.
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Recent technology and related innovations in supply chain management may offer partial solutions, but industry experts indicate the fundamental economic pressures require policy adjustments. As industry developments continue to evolve, businesses are monitoring how recent technology and related innovations might help mitigate operational challenges.
With the holiday season approaching, retailers face critical decisions about inventory levels, pricing strategies, and supplier relationships that could determine their survival in an increasingly volatile trade environment.
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