US-China Trade Tensions Impact US Retailer Confidence

June 13, 2019 Share Print 0

The first half of 2019 was expected to be a boon for U.S. retailers, buoyed by solid consumer sentiment at home and expansion in China – the market many of them have targeted for the future.

Instead, new tariffs President Donald Trump slapped on some Chinese imports last month and fears that more could come in the escalating trade conflict between Washington and Beijing, had many investors bailing from the sector.

The tensions have hovered as a potential risk for markets for more than two years. But what really unsettled investors in the latest round of earnings calls was retailers admitting that tariffs were starting to bite and how little they had to say on how they could soften the blow.

Best Buy Co Inc and Walmart warned higher duties would put pressure on prices for U.S. consumers, while Macy’s Inc and J.C. Penney Company Inc said their businesses would suffer if tariffs were extended to include apparel and footwear.

via Reuters

This article is for general information purposes only. It is not investment advice or a solution to buy or sell securities. Opinions are the authors; not necessarily that of OANDA Corporation or any of its affiliates, subsidiaries, officers or directors. Leveraged trading is high risk and not suitable for all. You could lose all of your deposited funds.

Bio
Twitter
Google+
Latest Posts

Alfonso Esparza

Senior Currency Analyst at Market Pulse

Alfonso Esparza specializes in macro forex strategies for North American and major currency pairs. Upon joining OANDA in 2007, Alfonso Esparza established the MarketPulseFX blog and he has since written extensively about central banks and global economic and political trends. Alfonso has also worked as a professional currency trader focused on North America and emerging markets. He has been published by The MarketWatch, Reuters, the Wall Street Journal and The Globe and Mail, and he also appears regularly as a guest commentator on networks including Bloomberg and BNN. He holds a finance degree from the Monterrey Institute of Technology and Higher Education (ITESM) and an MBA with a specialization on financial engineering and marketing from the University of Toronto.