Retailers To Take A Hit: Trade War Could Cause ‘Widespread Store Closures’
Another potential round of tariffs in a tit-for-tat trade war between the U.S. and China could have an unintended consequences: massive store closures. The White House on Monday evening released a fresh list for about $300 billion in Chinese goods that President Donald Trump has said he’s contemplating hitting with tariffs as high as 25%. The list includes everything from clothing and sneakers to sporting goods and other accessories, often found at the mall. “The market is not realizing how much brick & mortar retail is incrementally struggling and how new 25% tariffs could force widespread store closures,” UBS analyst Jay Sole said in a research note. “We think potential 25% tariffs on Chinese imports could accelerate pressure on these company’s profit margins to the point where major store closures become a real possibility.” Read more at CNBC.
