What's Inside

How are new US tariffs—and other countries’ potential retaliation and responses—disrupting the US retail sector and broader economic landscape? In this report, we dive into the latest on tariffs and their impacts.

Drawing on proprietary data and industry interviews, this report explores:

• Economic disruption—Forecasts show potential ripple effects through retail and the broader economy, including a projected spike in consumer prices and heightened risk of recession.
• Consumer sentiment and behavior shifts—US consumers fear economic repercussions and are adjusting spending as a result.
• Retailer reactions—From multinational apparel brands to off-price powerhouses, discover how major players are responding, such as by reallocating sourcing, accelerating inventory strategies and leveraging diversified supply chains.
• Strategic opportunities—While many retailers brace for margin compression, others—such as secondhand platforms and domestic manufacturers—stand to benefit from shifts in consumer behavior and sourcing dynamics.

Data in this research report include US consumer survey data from Coresight Research:

• The impact that consumers expect tariffs to have on them personally and on the economy
• Concerns around new US tariffs and perceived benefits of tariffs
• Changes in consumer behavior to avoid the effects of new tariffs
• Expectations for the economy and personal finances over the next 12 months

Companies mentioned in this report include: Abercrombie & Fitch, Bath & Body Works, Beiersdorf Aktiengesellschaft, BJ’s Wholesale Club, Dollar Tree, eBay, Kroger, NIKE, Skechers, The TJX Companies, VF Corporation

Other relevant research:

• This report updates our previous insights published in February 2025: New Tariffs, New Challenges: How US Trade Policies Could Impact Prices and Profits.
• Mapping the US’s Reciprocal Import Tariffs: Which Nations Are Affected?
• Tariffs + Consumer Sentiment: A Timeline, 2025
• Webinar replay—Adapting to Tariff Pressures: Strategies for Retail Success
• All our coverage of tariffs