Trump delays tariffs until August 1, giving retailers a holiday advantage

President Trump announced that he has delayed implementing certain tariffs until August 1. This means that retailers preparing for the Christmas shopping season will now have more time to order and receive inventory without paying the higher prices, according to Axios.

Retailers typically prepare early for the Christmas shopping season, so this delay helps them bring in inventory before the holiday rush. The higher tariff costs might not be felt until after the holiday season, possibly not until early 2026.

White House moves deadline, no extensions expected

Earlier this year, the White House decided to temporarily stop certain tariffs from going into effect. The tariffs were set to resume on Wednesday.

President Trump announced on Truth Social that the White House has sent letters to trading partners explaining a new August 1 deadline for the tariffs. Trump said on Tuesday that there will be no extensions.

Shoppers may not notice price hikes until 2026

Paul Donovan, chief economist at UBS Wealth Management, told Axios that shoppers probably won’t notice price increases until after the holidays, likely in early next year.

Shipping goods from Asia to the U.S. can take up to six weeks, as they travel across the Pacific. And because the tariff increase doesn’t start until August 1, anything shipped before that date will likely arrive by mid-September and avoid the higher tariffs, even if it comes later, Donovan told Axios. Retailers typically start building up their inventory early to prepare for the big holiday shopping period.

Retailers racing to beat deadline

Retailers are rushing to import products before August 1 so that even if they arrive in September, they’ll still benefit from lower tariffs. This helps them save money and keep prices lower for the holiday shopping season.

If a product cannot be stored ahead of time, it will be affected by the tariff hike immediately, and consumers will notice an increase in prices.

The Toy Association surveyed over 400 member companies in April to assess the effects of tariffs. Fifty percent reported they would be out of business within weeks or months.