Navigating Tariffs: The Ripple Effect on Retail

As I began planning this month’s newsletter, one word kept flashing across headlines, economic reports, and retail roundtables: tariffs. Whether looming at 145% or fluctuating and retracting, the mere possibility of increased tariffs is already impacting the way retail teams are planning, pivoting, and preparing. From sourcing to sales, tariffs are top of mind.

While some reports suggest that China may avoid the steepest increases, the industry remains caught in a state of “what if?” The uncertainty alone is causing ripples across our operations, supply chains, and customer behaviors. And, as we’ve seen time and again, retail doesn’t wait—it reacts.

Let’s take a look at just a few of the ways retailers and consumers are experiencing and responding to this rapidly evolving landscape.

Tariffs and the Hidden “Pink Tax”: Why Women Are Paying More

Last month, I commemorated International Women’s Month by highlighting one of my first influential leaders—a trailblazing female retail executive who inspired me early in my career. This month, I came across a powerful article titled “Tariffs Impact Consumers—But Women Bear the Brunt,” and it struck a chord.

I thought back to my days as Director of Stores for gBriggs, a fashion retailer based in Baltimore. We were intentional about creating parity. Our private-label women’s suits were designed to the same standards as the men’s—fully constructed, fully alterable, and sold with identical tailoring costs. We shared 50% of our floor space between men’s and women’s collections and trained every leader to lead and serve in either department.

At the time, it was innovative. But even today, it’s still not standard. And new tariffs threaten to create even wider gender disparity issues in retail.

Did you know that women’s apparel imports are taxed, on average, at 16.7%, while men’s clothing sits at 13.6%? That’s a difference baked into the pricing before items even hit the floor. Research shows that these “pink tariffs” are costing women more than $2 billion a year. The impact is even more profound when you factor in the gender pay gap. Women working full time earn 83 cents for every dollar men earn, and in some retail positions, the disparity is even greater: “The earnings ratio shrinks to 75% when all working women, including women who work less than 35 hours a week or in seasonal jobs, are included in the calculation.”

As gender economist Katica Roy puts it, “Not only do women have less money coming into their wallets, they have more money going out.” To be sure, this isn’t just a women’s issue; it’s an economic and societal issue. Increased tariffs on apparel in particular will have an immediate impact on consumers, and especially on low-income families.

Operational Whiplash: How Retail Teams Are Feeling It

From frontline store teams to category managers, buyers, supply chain specialists, and analysts, the threat of tariffs affects every link in the chain, and the ripple effects are far-reaching, leading to rushed purchasing, depleted inventory, unpredictable forecasting, rising costs, shifting spending habits, and customer hesitation.

Fashion and craft retailers that source overseas are reconsidering long-term partnerships. In some cases, they’re being forced to trade trust-based supplier relationships for transactional new ones. In other sectors, like automotive and spirits, we’re already seeing the market impact, with countries like Canada retaliating by pulling American products off the shelves entirely.

The upshot: Retailers are having to quickly assess their exposure across categories and adjust their strategies amid continual change and uncertainty, all while balancing both cost management and customer satisfaction. As these changes keep coming, it’s more important than ever for leaders to ensure their teams are engaged, have clarity and support, and are able to continue delivering an excellent customer experience.

Leading Through the Fog: What Teams Need Now

Times of change call for more than just strategic realignment; they call for skilled and emotionally intelligent leadership, not just in the C-suite, but at every rung of the organization. These 5 keys to change leadership are critical for helping to keep motivation levels up and stress levels down.

Particularly with the rapid changes and upheaval we’re going through right now, leaders must communicate clearly, more frequently, and with empathy. Their teams need the tools, context, and confidence to adjust goals and support their customers. At MOHR Retail, we’re seeing this demand across the board: Store leaders, district managers, and merchant teams alike are navigating real-time shifts in customer behavior, pricing strategy, and product availability. Training, coaching, and leadership development aren’t “nice-to-haves” anymore; they’re the engine that powers agility, resilience, and purpose.

An Industry That Rises to the Challenge, Time and Again

Retail is no stranger to disruption. We've endured recessions, terrorist attacks, racial reckonings, a global pandemic, and a host of other issues that have sparked supply chain chaos in the past. We’ve evolved each time to adapt to new realities—and we will again. By proactively investing now you’ll not only be able meet today’s challenges, you'll also be putting the organization in a strong position for the future.

And who knows? By the time you read this, tariffs may pivot again. Ultimately, though, tariffs are just one more curve in the dynamic journey of retail. Let’s support one another, lead with clarity, and make the decisions today that will allow us to thrive tomorrow.

Now is the time to ensure your leaders and teams have the skills, support, and tools they need to thrive in the constantly changing world of retail. Get in touch today to learn how we can help you build the interpersonal skills that drive results in retail.