Even retail executives are bullish on the “TACO trade.”
Following weeks of shifting trade policy, early deals and winding court challenges, some retail executives are starting to feel more optimistic about President Donald Trump’s so-called reciprocal tariffs, a new survey from consulting firm AlixPartners shows.
The survey, which polled executives from brands, retailers and other consumer companies on June 1, found most respondents expect the president will walk back those steep duties on the European Union, Vietnam, India and Mexico after a 90-day pause lapses in July. Mexico wasn’t part of Trump’s reciprocal tariffs but has faced new levies from the administration, which respondents also expect will stay the same.
Imports from those areas and dozens of other countries are facing a 10% duty as the Trump administration tries to hammer out trade deals with individual nations. Most survey respondents expect those 10% tariffs to remain in effect — rather than the far higher rates originally imposed on April 2 — after those negotiations are complete.
For example, 53% of retail executives expect tariffs on goods imported from Vietnam to stay at 10% after the delay ends, instead of the feared 46% “reciprocal” levy that could batter companies like Nike
