Experts say these retailers could be worst hit by the trade war with China

Facebook/Ralph Lauren

• The US-China trade war has escalated dramatically over the past few days as the US and China have imposed fresh tariffs on billions of dollars’ worth of each other’s goods.
• Analysts are calling out the retailers and industries that they expect to be worst hit by the newest round of tariffs. 
• Some retailers have spoken publicly about how they are preparing to weather the storm. And as the retail sector approaches earnings season, this topic is expected to be a focal point of analysts’ questions. 
• Visit Business Insider’s homepage for more stories.

The US-China trade war reached new levels this week, but the worst is not over yet.

Retailers are now bracing themselves for the prospect of yet more tariffs on $300 billion worth of Chinese goods.

Read more: Beijing calls for a ‘people’s war’ against the US as Trump threatens tariffs against another $300 billion of Chinese goods in all-out trade battle

Here’s who analysts and execs have said could be worst impacted by the new wave of tariffs — and eventually be forced to raise prices:

Apparel companies

Facebook/Ralph Lauren

In an earnings call on Tuesday, Ralph Lauren CEO Patrice Louvet said that the company has a large exposure to tariffs. According to Bloomberg, around one-quarter of Ralph Lauren’s products are from China. 

"Think sweaters, polo shirts, some of our footwear," Louvet said in an interview on the call, Bloomberg reported. "As you can imagine, we are working on different scenarios, absolutely." 

Rick Helfenbein, president and CEO of the American Apparel & Footwear Association, said in an interview with CNN that he and other people in the apparel industry are "scared and panicked" about the impact that the trade war could have. 

Read more: Victoria’s Secret got whacked by Trump’s tariffs. Here’s why fashion stocks are suffering.

Home-improvement stores

Ted Shaffrey/AP Photo

Analysts have previously called out Home Depot and Lowe’s as retailers that are likely to be negatively impacted by tariffs in the future. 

Wedbush analyst Seth Basham told Business Insider at the end of 2018 that tariff-driven costs could put pressure on these companies’ margins and sales, as they both currently have "significant exposure" to tariffs.

Read more: A financial analyst breaks down why Trump’s tariffs could be excruciating for Home Depot and Lowe’s

Electronics sellers

Getty Images

Analysts are expecting electronics sellers to be badly hit by the new wave of tariffs. 

Best Buy, which previously said that around 7% of its goods would be impacted by tariffs, has seen its stock price tumble this week as investors anticipate the worst.  

See the rest of the story at Business Insider

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Source: Business Insider – feedback@businessinsider.com (Mary Hanbury)