A high-stakes tariff fight tied to former President Donald Trump is moving toward the Supreme Court, and retailers are bracing for ripple effects on prices and jobs. American Giant CEO Bayard Winthrop, speaking on Fox Business’ “Mornings with Maria,” weighed the risks for shoppers and the outlook for his company’s work with Walmart. The discussion comes as brands juggle inflation pressures, supply chain shifts, and policy uncertainty.
“American Giant CEO Bayard Winthrop discusses how President Donald Trump’s Supreme Court tariff case could impact retail and his partnership with Walmart on ‘Mornings with Maria.’”
Why tariffs matter for store prices
Tariffs hit input costs first. Those costs then filter into price tags. Large chains can soften blows with scale, while smaller brands have less room to absorb shocks.
Economists who studied the 2018–2019 tariff rounds found most costs landed on U.S. importers and, over time, on consumers. That pass-through can raise prices on basics like apparel, electronics, and household goods.
Retailers often hedge by diversifying suppliers or shifting orders to tariff-free sources. But those moves take time and money, and they do not always cover every item a shopper buys each week.
Made in America meets policy risk
American Giant built its reputation on U.S.-made apparel. That strategy can shield some products from imported input shocks. It also links the business to domestic mills and cut-and-sew shops.
Even so, few apparel lines are fully insulated. Cotton, trims, zippers, dyes, and machinery may cross borders. A court decision that changes tariff rules could affect these pieces of the puzzle.
Winthrop’s remarks point to a central challenge for manufacturers. Companies need long-term clarity to plan hiring and invest in equipment. Frequent policy swings make that harder.
The Walmart factor
Winthrop also highlighted his company’s partnership with Walmart. The big-box retailer has pledged billions for U.S.-made or assembled goods through its supplier initiatives. For brands like American Giant, access to Walmart’s scale can bring larger, steadier orders.
Tariffs could still influence such partnerships. If costs rise on materials or machinery, suppliers may face tighter margins. Walmart, known for sharp pricing, will push for efficiency gains to protect value for customers.
The result is a test of how supply chains adapt. Some production may onshore further. Other pieces may shift to lower-tariff countries. The balance will vary by product line and season.
What a Supreme Court ruling could change
The core legal issue centers on how much power the executive branch has to set or expand tariffs, and under what conditions. A ruling could either affirm that latitude or require stricter checks.
If the Court narrows executive authority, future tariff moves could face more review. That might calm planning for retailers, who prefer stable rules. If authority is upheld, policy swings may remain more likely when administrations change.
- Stable rules lower planning risk and support long-term contracts.
- Broad executive power allows quick action but raises uncertainty.
- Mixed outcomes could split by product category or legal pathway.
What it means for shoppers and workers
Higher import costs often show up as higher shelf prices. If retailers resist increases, they may cut promotions or reduce features to hold price points. Either way, the value proposition changes.
On the jobs side, some domestic producers could see gains if onshoring grows. Others may pause hiring if demand weakens under higher prices. The direction will depend on how brands and retailers rebalance their sourcing maps.
Signals to watch
Investors and supply chain teams will watch freight rates, factory orders, and retail inventories. They will also track vendor lead times, which tend to stretch when sourcing shifts are underway.
For apparel, the back-to-school and holiday seasons will serve as early stress tests. If costs rise, pricing moves and markdown calendars will show where pressure is building.
The takeaway is clear. Price stability relies on policy clarity. Winthrop’s focus on tariffs and the Walmart partnership reflects a broader retail calculus: protect margins, maintain value, and keep domestic production viable where possible. The Supreme Court’s decision will shape those choices this year and next, setting the tone for how brands plan, hire, and price—and what shoppers pay at the register.
