Tariffs slam retailers as Walmart and Nike face big losses

00:00 Josh Lipton

Some of the large movers aft hours close now, they see retailers. And Yahoo Finance enforcement editor, Brian Sozzi has a look astatine immoderate cardinal names, guys.

00:08 Brian Sozzi

Yeah, Josh, looking uh, disfigured present successful the aft hours. Walmart banal down implicit four, uh, 4%. Amazon banal getting slammed, adjacent to 5%. You conscionable fastener successful on, uh, Walmart, for example. This is simply a institution that gets astir 70% of its outgo of goods sold, AKA merchandise, from China. Sure, they person a large market business, but a batch of the, uh, apparel, sneakers, belts, you sanction it, they get that worldly from China. And of course, Amazon, uh, relying its marketplace sellers trust connected China and the European Union. You heard the reporting determination from Jen, European Union going to get slapped with a 20% tariff. China, 34%. That could origin marketplace sellers to rise prices beauteous soon. That could besides mean a request pullback, perchance not bully vacation buying seasons for some of those names. But I'm holding up my Air Jordans sneaker here, guys, due to the fact that earlier this segment, I'm like, wherever the hellhole did this sneaker travel from? Guess what? It's made successful China. Uh, and that's wherefore you're seeing Nike shares down implicit 6% connected this news. A batch of pressure, uh, connected Nike. Now, they person also, uh, diversified. They're not alone, diversifying, uh, into Vietnam. Well, conjecture what? Vietnam, they get, uh, deed with the tariff of 46%. So each those retail executives that person told maine and been precise excited about, well, we, we're moving to Vietnam, we're going to effort to prevention costs. Well, nary luck. Uh, you were relying connected Vietnam, you're going to get taxed a batch more. You're astir apt going to person to propulsion done terms increases. This is simply a large antagonistic improvement for the apparel, uh, sneaker, and handbag industry, guys. Again, this Nike footwear and beauteous overmuch each of them are made successful China.

02:36 Josh Lipton

All right. Thank you, Sozzi. Appreciate it.