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Report: These retailers should be extra concerned about tariffs

One well-known retailer could reportedly see its operating profit fall 168% due to tariffs on Chinese imports.

According to Retail Dive, analysts from J.P. Morgan have identified Target, Bed Bath & Beyond, RH (formerly Restoration Hardware), and Floor & Décor as the four retailers who will likely see the greatest impact on their operating profits from the current tariffs on goods manufactured in China.

In addition, J.P. Morgan reportedly concluded that a new round of proposed tariffs on Chinese goods known as “tranche four” could reduce Best Buy’s operating profit by up to 168% if the retailer could not pass along any of the cost. Best Buy is especially vulnerable to tariffs because it sources half of the goods it sells from China.

However, the proposed tranche four tariffs would also have an especially strong impact on Dick’s Sporting Goods, Bed Bath & Beyond, BJ’s Wholesale, Michael’s, Walmart, Target, and Costco. Prices of goods covered in the new tariffs could rise between 10% and 21% if tranche four were fully implemented.

J.P. Morgan analysts also reportedly noted that so far auto parts retailers have not seen any negative impact from tariffs, as auto parts purchases are often non-discretionary.

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