CNBC's Courtney Reagan joins 'Squawk on the Street' with the latest news on the retail sector.

The recently passed GOP tax bill has been met with approval from the retail sector, primarily because it maintains the corporate tax rate at 21 percent. Retail lobbyists and executives emphasized that keeping this rate was their top priority, as any increase could have significantly impacted their businesses. The bill also addresses the commercial de minimis provision, which previously allowed companies to ship inexpensive goods directly to U.S. consumers without paying import duties. By phasing out this provision, the bill aims to create a more level playing field for U.S. retailers, particularly in competition with foreign companies like Shein and Temu.

Additionally, the bill includes changes to the taxation of tipped employees, though the full implications for retailers and their workers are not yet clear. Retailers are expected to update their systems to comply with the new rules regarding tip taxation. Overall, the legislation is seen as beneficial for the retail industry, with some uncertainties remaining around specific employment impacts.

How the GOP tax bill could impact retail

Retailers coming out as big winners from President Trump's big, beautiful bill. Courtney Reagan has the latest on what's in the bill and, more importantly, what isn't. Courtney. Hi, Mike. Yes, so retailers relaxing a little bit more today, I think, than at least earlier last week with both this tariff deadline extension and the passage of the president's spending bill. So the XRT is down slightly, about a half a percent, but we are seeing other names trading higher like Tractor Supply, Ralph Lauren, Tapestry, Dollar Tree among the early winners today in an otherwise fairly down market. But for retailers, you're right. It's the detail of the big, beautiful bill that matters most, not raising the corporate tax rate. They are full payers at that 21 percent. And I was told priority number one through 50, according to RILA, which lobbied on behalf of the retail industry and confirmed by retail executives, they needed that corporate tax rate to stay at 21 percent. The next priority, the business salt rate, which, if changed, could have added between two and six percent. The lobby group said to that 21 percent corporate tax rate, but also phasing out the commercial de minimis by July 2027, quote, evens the playing field for U.S. retailers, according to RILA. Now, while the group won't name names, it's understood. That means it makes it harder for Sheehan and Temu and others that built businesses shipping very inexpensive goods directly to U.S. consumers without paying import duties. And while the de minimis executive order was in place that targeted China businesses specifically. So now this act codifies it with further reach. Now, there may be some impact for the retail jobs that accept tips that are now subject to less tax, like, say, target owners, same day delivery, shopping service shipped. There's 300,000 employees that work there. But those implications are a little less clear at this point. I'm told it's more about how retailers need to appropriately implement their systems so that they are taxing appropriately for the changes with the tips. Leslie. Huh. Fascinating.

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Kerrville

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McAllen

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Global Tariffs

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State of Rio de Janeiro

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Texas campground owner describes flash floods: "It was just chaos"

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Death toll rises as search for Texas flood survivors continues

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