Walmart (WMT) is the latest U.S. corporation to feel the sting of President Trump's tariff binge.
The White House just put 10% tariffs on $200 billion worth of such imported goods as Christmas lights, shampoo, dog food, luggage, mattresses, and air conditioners, among other goods. Walmart shares are only down roughly 0.06% Friday Sept. 21 to around $95.6 a piece, as the broader US market has managed to shake off trade tensions, with the S&P 500 hitting record highs. China has said it will likely retaliate to the latest round of tariffs.
Walmart sent a letter to the White House urging it not to impose the tariffs that it ultimately did impose. "The immediate impact will be to raise prices on consumers and tax American business and manufacturers," the letter wrote.
Among other companies affected, Micron Technology (MU) shares fell $1.81, or almost 4%, to $44.25 after the semiconductor company said gross margins would suffer as a result of Trump's trade war. The stock tumbled despite Micron's strong fourth-quarter earnings report that beat expectations on the top and bottom lines.
Apple (AAPL) could also see some of its products hit with tariffs, as it also sent a letter to the White House. It was unclear in Apple's letter whether management was indicating that it would have to raise prices, or if it was simply warning that many American companies would have to do so. Over-inflation for consumers is certainly emerging as a major concern as a result of the trade spat the US is in with China.
Target (TGT) is also feeling the pain, as it too will see rising costs due to the latest round of tariffs, and management made the same point Apple made about the economy. "We are disappointed that despite broadly expressed concerns from companies and groups across a variety of industries, the administration has continued to escalate the threat of tariffs that would penalize American families," the company wrote in its letter to the White House. Target is also shrugging off the concerns, with its stock up roughly 0.08% Friday.Listen to TheStreet's Martin Baccardax and Tracy Byrnes talk tariffs, oil and interest rates below:
American retailers at large are getting hit with tariffs, an unfortunate twist of events for the industry, which is fresh off of a slew of solid earnings reports. Target shares rallied 3% August 22 after reporting a stellar quarter. Walmart also reported strong earnings in August, showing strength in its currently booming digital revenue channels. Kohl's (KSS) , Dollar General (DG) , and Sears (SHLD) are all affected by previous tariffs.