Retail stocks clobbered as Trump’s tariffs send shockwaves through supply chains
It’s a retail rout with Nike, Lululemon, Best Buy, and more slumping.
Retail stocks are taking a beating Thursday, with the SPDR S&P Retail ETF down more than 6% as retailers and traders alike scramble to assess the fallout from President Trump’s latest round of tariffs. The new duties, targeting major manufacturing hubs, have raised alarm across the sector.
Nike and Lululemon took a huge hit, falling double digits as factories in China, Taiwan, and Indonesia are caught in the tariff crossfire.
Target slid more than 8% in early trading as the tariffs threaten to push prices higher on goods heavily reliant on suppliers in China and other Asian countries.
Discount retailers aren’t immune either. Dollar Tree dropped 12%, with 40% of sales tied to imports from China.
Deckers, parent of Uggs and Hoka, suffered a 13% plunge, as most of its production is sourced from Asia.
Best Buy, which flagged tariff-related price hikes last month, saw shares sink about 14%, as much of its inventory comes from China and Mexico.
With tariffs set to hit April 9, retailers are bracing for the ripple effect. Bernstein analysts, in a note Thursday, raised red flags for apparel and specialty retailers, warning that the new levies will “significantly drive up inflation” and spike the prices of all imported goods. The move is also expected to reverse any burgeoning positive consumer trends.
