The National Retail Federation (NRF) responded positively to the announcement that the Administration will defer import duty during the ongoing COVID-19 outbreak in the U.S.

Matthew Shay the CEO of the NRF noted, “The challenges to the retail industry brought on by this pandemic are severe at best. This deferral provides some retailers with additional liquidity and better cash flow, giving hope for business continuity and a faster recovery once the pandemic has passed.”

The fact that the NRF petitioned for and were granted a deferral in paying import duties belies the claim by the Administration that “China is paying for it.” The cost of punitive duties is mostly borne by U.S. consumers. The remainder that cannot be passed on is absorbed by retailers.