Macy’s warns customers of impact of trade war
NEW YORK (AP) — Macy’s customers may finally start to feel the impact of President Donald Trump’s trade war with China.
Like many department stores and general merchandise retailers, Macy’s had been left largely unscathed by the first several rounds of tariffs since they focused more on industrial and agricultural products.
But products like furniture saw an increase in tariffs to 25% last week. And now the administration is preparing to extend the 25% tariffs to practically all Chinese imports not already hit with levies including toys, shirts, household goods and sneakers, which furnish Macy’s behemoth stores. That’s roughly
$300 billion worth of products on top of the $250 billion targeted earlier.
Macy’s CEO Jeff Gennette told investors Wednesday the higher levies on furniture will have some impact on the department store business, but it can be mitigated. But he said if the potential fourth wave of tariffs are placed on imports, that could mean higher retail prices for both store label and national brands.
“Looking at all those categories and those brands that are included, it is hard to do the math to find a path that gets you to a place where you don’t have a customer impact,” Gennette told investors.
The escalating trade tensions put a damper on the news surrounding Macy’s fiscal first quarter performance, which smashed Wall Street estimates.