President Donald Trump can deliver a timely economic win before the holiday shopping season by using the new U.S.-China Board of Trade to reduce tariffs on everyday consumer goods.
Tariffs on imports from China have been defended as leverage against unfair trade practices and a tool to protect strategic industries. But not every product imported from China is strategic. Toys, children’s clothing, sneakers, headphones, phone chargers, small appliances, and household basics are not military equipment or advanced technology platforms. They are products American families buy for birthdays, back-to-school, home offices, and holidays.
The proposed Board of Trade gives the administration a practical way to target tariffs strategically on high-value, sensitive goods that are tied to national defense and security industries instead of consumer products, where tariffs only serve to raise consumer costs. That distinction matters now more than ever. Retailers have worked for years to diversify supply chains, absorb cost increases, and reduce the impact of the trade war on U.S. shoppers. After nearly a decade of increased China-related tariffs, however, much of that flexibility is gone. When tariffs remain on consumer goods that are not made in the United States at scale, the costs move through the supply chain and ultimately hit households.
Everyday consumer products should therefore be at the top of the administration’s wish list for the Board’s early success. NRF’s comments to USTR on the Board of Trade identified key consumer goods categories where tariff reductions would matter immediately: apparel, footwear, furniture, appliances, travel goods, toys and games, household tools, and consumer technology. In those categories alone, U.S. companies paid an estimated $15 billion in tariffs annually from 2022 through 2024. These costs show up in the price of a holiday toy, a child’s coat, a laptop accessory, a kitchen appliance, or a pair of shoes.
Toys are the clearest example of how consumers get caught in the middle. An estimated 77% of toys sold in the U.S. are manufactured in China, reflecting specialized supply chains not available in the U.S. that cannot be recreated overnight. Toys previously were duty-free but are now subject to an average 10% tariff. For many lower-cost toys, especially those bought by families during the holidays, there is no realistic near-term domestic manufacturing alternative at the same scale and price point as China. Keeping extra tariffs on these products does not bring production back; it simply makes the season more expensive.
The same logic applies to apparel and consumer electronics. Families need affordable clothing year-round, and holiday demand adds pressure for sweaters, coats, shoes, and gifts. Consumers also depend on electronics accessories and devices for school, work, and daily life. Reducing tariffs on headphones, cables, chargers, printers, and similar products would help households and small businesses manage costs while preserving U.S. leverage on genuinely strategic sectors.
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This is the kind of targeted trade action that aligns with Trump’s economic message. It maintains pressure on unfair practices and national security-sensitive sectors while removing unnecessary costs from products Americans buy every day. It would also support retailers, small businesses, and American families trying to stretch their dollars.
The administration should use the Board of Trade now to deliver a first tranche of tariff relief on non-sensitive consumer goods, starting with toys, apparel, and consumer electronics. That would be an impactful and practical step to ease price pressure before the holidays, give retailers the ability to keep shelves stocked and prices stable, and show that a tough trade policy can also be disciplined, targeted, and pro-consumer. For American families, that would be more than a negotiating tactic — it would be a real affordability win.
David French is Executive Vice President of Government Relations at the National Retail Federation in Washington, D.C.