Macy’s CEO warns that the trade war could force the department store to raise prices (M)

AP/Bebeto Matthews

• Macy’s CEO Jeff Gennette said in an earnings call on Wednesday that proposed new tariffs would have a significant impact on the company.
• "It is hard to do the math to find the path that gets you to a place that doesn’t have a customer impact," he said, without commenting on exactly what this would mean in terms of price increases.
• The US-China trade war reached new levels this week. Retailers are now bracing themselves for the prospect of yet more tariffs on $300 billion worth of Chinese goods.
• Visit Business Insider’s homepage for more stories.

Macy’s is bracing itself for a fresh wave of tariffs. 

In a call with analysts on Wednesday, Macy’s CEO Jeff Gennette addressed the ongoing US-China trade war, which reached new levels this week, and whether it would have a meaningful impact on the department store’s business. 

Gennette said that tariffs imposed on Chinese imports during 2018 did not have a meaningful impact on the company. However, new tariffs announced this month on $200 billion worth of Chinese imports likely would have an impact, specifically on Macy’s furniture business.

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

Gennette said Macy’s is now bracing itself for another wave of proposed tariffs that would impact $300 billion worth of goods imported from China. Should these be put into action, Macy’s is unlikely to find a way to absorb costs without raising prices.

"It is hard to do the math to find the path that gets you to a place that doesn’t have a customer impact," he said.

Gennette said he is still hopeful that talks between the US and China will be productive. 

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