By SDCN Staff
Washington, D.C.–The National Retail Federation and the Retail Industry Leaders Association have expressed strong concerns over proposed measures in the Section 301 investigation into China’s dominance in maritime, logistics, and shipbuilding.
In a joint submission to the Office of the U.S. Trade Representative, the two organizations, alongside more than 30 industry groups, cautioned that the proposed tariffs and mandates could significantly disrupt trade and inflate costs for businesses and consumers alike.
A study commissioned by the National Retail Federation, Retail Industry Leaders Association, and other industry representatives—conducted by Trade Partnership Worldwide LLC—found that the proposed actions could drive up prices on both imports and exports, negatively impacting a wide range of economic sectors.
“Imports and exports decline as a result of the higher costs of the fees and the mandate to use more expensive U.S.-built, U.S.-owned, and U.S.-operated ships,” the study reported. “While the potential negative impacts on U.S. agriculture are ‘headline-grabbing,’ these impacts extend to other sectors, including retail. As higher costs filter through the economy, wholesale and retail trade sectors, from stores to restaurants, see declines in sales and employment.”
Retailers have voiced particular concern over the proposed port service fees, which they fear will be passed onto cargo owners at substantial costs. There is also apprehension that shipping carriers may alter their routes to avoid these fees, leading to congestion at major ports while bypassing smaller ones. Such disruptions could strain the already fragile supply chain.
“We are concerned that the trifecta of China and reciprocal tariffs, new aluminum/steel derivative tariffs, and the China-ship fee will put extraordinary pressure on U.S. retailers,” one retailer stated. “In sectors already struggling under current economic and housing market conditions—such as furniture and home improvements—these fees could nearly double the cost of imported items.”
David French, National Retail Federation’s executive vice president of government relations, urged the administration to explore alternative solutions.
“We encourage the administration to continue to investigate the barriers and limitations on U.S. shipbuilding and to seek other means to help revitalize the industry without burdening those who rely upon it,” he said.
Michael Hanson, Retail Industry Leaders Association’s senior executive vice president for public affairs, echoed similar concerns.
“The goal of revitalizing the American shipbuilding industry is laudable. However, these new fees will have ripple effects across the U.S. economy,” he said. “If enacted, these policies will disrupt the flow of commerce, add regulatory burdens, and increase costs on American manufacturers and consumers. Retail Industry Leaders Association looks forward to collaborating with the administration on ways to revitalize the U.S. shipping industry while minimizing disruptions to competitiveness, businesses, and consumers.”
National Retail Federation and Retail Industry Leaders Association, two of the nation’s most influential retail organizations, play key roles in advocating for policies that support the retail industry, which contributes $5.3 trillion to the U.S. GDP and employs 55 million Americans. Their members, representing thousands of businesses nationwide, continue to push for trade policies that promote economic stability and growth while addressing industrial concerns.
The U.S. Trade Representative has yet to announce a final decision on the proposed tariffs and mandates, but industry leaders are urging policymakers to weigh the economic implications carefully before moving forward.
