New Tariffs Could Cause 12,000 Store Closures

The bloodbath at malls is about to get worse — unless the U.S. and China can resolve their differences fast. Analysts at investment bank UBS cautioned that President Trump’s proposed new 25 percent tariffs on all Chinese imports that have not yet been targeted, including apparel and footwear, could result in the closure of 12,000 stores and the loss of $40 billion worth of sales. “Our view is the market is not realizing how much brick-and-mortar retail is incrementally struggling and how new 25 percent tariffs could force widespread store closures,” UBS retail analyst Jay Sole wrote in a note to clients Monday. What’s more, the number could be even higher as the research is just based on the 73 companies that Sole covers and does not include the potential impact on privately held retailers’ profit margins. The tariffs, of which the paperwork has already started and are expected to go into action at the end of the summer unless the two sides can reach an agreement, come at a trying time for the retail sector. The industry has already seen more stores closed this year than in the whole of 2018, driven by a combination of disappointing holiday results and many brands rethinking their

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