Republican leaders announced Thursday that upcoming negotiations concerning tax reform would not include any consideration of a border adjustment tax—a decision applauded by retail groups.

A tax on certain imported goods had been proposed by House lawmakers as a way to help U.S. businesses. While the idea gained traction among some domestic manufacturers, retailers and other industries that rely on imported goods were adamant in their opposition. They feared a border tax would increase prices on many basic goods and drive away customers as a result.

In the end, concerns about the border adjustment tax killed the proposal. The GOP's top six fiscal policymakers—including House Speaker Paul Ryan (R-Wis.)—issued in a statement saying that "while we have debated the pro-growth benefits of border adjustability, we appreciate that there are many unknowns associated with it and have decided to set this policy aside in order to advance tax reform."

The National Retail Federation, which launched an ad campaign against the tax in May, welcomed the decision.

"Today's update on the status of tax reform is very encouraging, particularly since the border adjustment tax is no longer under consideration," NRF President and CEO Matthew Shay said. "By removing this costly element of reform, the way has been cleared for swift action on a middle-class tax cut that will put more money in the wallets of the American taxpayer."

The Retail Industry Leaders Association said that by removing the tax proposal, retailers were now ready to get to work on tax reform.

"Today's announcement is an important victory for American families and businesses who desperately need tax reform and who would have been harmed most by the border adjustment tax," RILA President Sandy Kennedy said. "With BAT out, Washington has an opportunity for the first time in more than a generation to pass a tax reform plan that boosts American businesses and family budgets."

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