President Donald Trump has signed an executive order implementing a reciprocal tariff policy, meaning that any tariffs imposed on US goods by other countries will be matched equally, leading to a wave of fresh concerns being raised, including some by the National Retail Federation (NRF).

Signed last Thursday, the policy applies to tariffs and taxes on US products. It aims to address trade imbalances by targeting tariffs, value-added taxes, and restrictions on market access for American businesses. Government officials are set to conduct a country-by-country review to identify unfair trade practices and recommend corrective actions as part of the initiative, which is viewed as an alternative to a blanket global tariff.

In response to the reciprocal tariffs, the NRF, which previously stated it would welcome President Trump’s review of tariffs, noted the disruption the tariffs will have on global supply chains, as well as the impact on consumer spending.

“While we support the president’s efforts to reduce trade barriers and imbalances, this scale of the undertaking is massive and will be extremely disruptive to our supply chains,” said David French, executive vice president of Government Relations for the NRF, in a statement.

“It will likely result in higher prices for hardworking American families and will erode household spending power. We encourage the president to seek coordination and collaboration with our trading partners and bring stability to our supply chains and family budgets.”

“The University of Michigan monthly consumer sentiment index continues to decline, suggesting consumers are alarmed about trade war uncertainty.”

President Trump previously escalated tariffs in his return to office, recently imposing new import duties on China, Canada, and Mexico, with delays granted for the latter two. The US has also introduced broad tariffs on steel and aluminum, prompting threats of retaliation from the European Union and criticism from Canada and Mexico.

Concerns over rising tariffs have already led several fashion companies, such as Puma, Steve Madden, and Skechers, to reconsider their sourcing strategies, further underlining the potential impact on global supply chains.