A number of stocks fell in the afternoon session after markets gave up early gains with optimism over progress in US-China trade talks quickly fading as the Trump administration announced plans to raise tariffs on all Chinese imports to well above 100%.
Shares of Abercrombie & Fitch Company (NYSE: ANF) are trading lower Tuesday as retail and apparel stocks sold off amid growing investor anxiety over U.S. tariff hikes and the rising probability of a recession.
Stay informed about the performance of the S&P500 index in the middle of the day on Tuesday. Uncover the top gainers and losers in today's session for valuable insights.
U.S. stocks staged a broad-based rally on Monday, snapping a volatile losing streak after President Donald Trump hinted at a more diplomatic approach to tariff negotiations.
The United States announced sweeping tariffs on several trading partners, including Asian nations such as Vietnam, Indonesia, and Bangladesh, which manufacture shoes and clothes for American labels.
Economist Peter Schiff warned on Thursday that Nike Inc. won't shift production to the United States despite newly imposed tariffs, predicting higher prices and reduced domestic sales for the footwear giant.
Goldman Sachs analyst Brooke Roach warns that U.S. tariff hikes will significantly impact retail, with China's tariff rate soaring to 54% and key sourcing nations like Vietnam (46%) and Cambodia (49%) facing steep increases. Apparel and footwear tariffs will average 38%, forcing brands to adjust pricing and negotiate costs.
Shares of athletic apparel retailer Lululemon (NASDAQ:LULU)
fell 15% in the pre-market session after President Trump announced "reciprocal tariffs" on all US imports, set at a minimum rate of 10%.
President Donald Trump's sweeping new trade tariffs sent shockwaves through global markets on Thursday, triggering a massive sell-off that echoed the COVID-19 pandemic-era routs, as investor risk appetite vanished in a flash.
