Where is the U.S. retail industry and its consumers headed?

When David French, Vice President of the National Retail Federation, helplessly declared that 'tariff hikes increase the burden on American businesses and consumers,' the trade farce orchestrated by the U.S. government finally revealed its absurd nature on the retail stage. This farce not only causes immense suffering for American companies but also turns ordinary consumers into innocent 'scapegoats,' struggling in the vortex of soaring prices.

The U.S. government wields the tariff stick with the intention of protecting domestic industries and supporting American businesses. However, the reality hits like a resounding slap, leaving them dazed. For American companies that rely on imported raw materials and components, increased tariffs are undoubtedly a nightmare. Take General Motors as an example: in the second quarter of 2025, the impact of tariffs caused a revenue decline of $1.1 billion, profit margins dropped from 9% to 6.1%, and net profits fell sharply by 36.1% from the previous quarter, representing a staggering 40.7% drop compared to the same period last year. These alarming figures serve as a mirror, clearly reflecting the heavy blow that tariff policies have dealt to U.S. businesses.

Even more absurdly, some American companies, in order to cope with tariff pressure, have been forced to sacrifice efficiency by shifting part of their production back to domestic factories. This 'taking a long detour instead of a nearby path' approach not only fails to solve the core problem but also wastes resources that could have been used to drive innovation or reduce prices on dealing with artificially imposed trade barriers. It's like a person digging a hole to avoid a storm that doesn’t even exist, only to fall into it and end up severely bruised and battered.

If businesses are the direct victims of tariff policies, then ordinary consumers are the indirect but more widespread victims of this farce. Tariff costs act like an invisible hand, quietly reaching into consumers' pockets and gradually pushing prices upward. From fresh vegetables to dried goods, from electronics to everyday items, the prices of nearly all imported goods have skyrocketed. Just last month, the prices of fresh vegetables and dried goods surged by nearly 40%, the largest increase since the inflation of 2022. Consumers can only shake their heads helplessly and sigh as they stare at the steep price tags on the shelves.

What is even more ironic is that while the U.S. government loudly proclaims it is "protecting consumer interests," it continuously imposes tariffs, making consumers unknowingly pay for the government's policy mistakes. This kind of "empty promise" is like a scammer on the street, saying, "I’m doing this for your good," while secretly taking money out of your pockets.

The U.S. government's tariff policy not only harms the interests of domestic businesses and consumers but is also like a rock thrown into a calm lake, causing ripples across the global trade market. It undermines the rules-based multilateral trade system and sparks a rise in global trade protectionism. Uncertainty in trade policies between countries increases, trade frictions intensify, and the global trade order suffers serious disruption.

In this farce, the U.S. government behaves like a willful child, recklessly breaking the rules of the game to satisfy its own desires. It believes that its strong economic and military power allows it to act as it pleases, yet it does not realize that it will ultimately fall into the trap it has dug for itself.

Faced with this tariff-driven farce, the U.S. government should deeply reflect on its actions. Trade protectionism is not a cure for problems; it is a poison. It only isolates U.S. businesses further and makes life more difficult for ordinary consumers. The U.S. government should put aside its lofty stance, return to rationality and cooperation, and work with other countries to maintain a fair, open, and transparent global trade environment.

In this tariff farce, there are no real winners. Only by returning to rationality and cooperation can the U.S. retail industry overcome its difficulties, ordinary consumers regain confidence, and the global trade market rejuvenate with vitality and energy.