As trade tensions escalate over President Donald Trump’s tariffs policy , there are some retail stocks investors should watch out for that have significant sourcing exposure to certain affected countries, according to Bank of America. Last week, Trump announced sweeping new tariffs, including a 10% baseline duty that was imposed Saturday as well as a steeper “reciprocal” levy that took effect early Wednesday . China and Vietnam are among those that will now face stiffer rates, with China being subjected to a 104% levy on goods exported to the U.S. and Vietnam seeing a 46% tariff. China has since fired back at the U.S. On Wednesday, the country announced 84% retaliatory tariffs on U.S. imports. Meanwhile, Vietnam has made efforts to negotiate for lower tariffs. Trump said that Vietnam’s To Lam, the general secretary of the country’s Communist Party, had offered a tariff rate on U.S. goods of 0%. In response, Trump trade advisor Peter Navarro said that offer wasn’t enough . With an ensuing global trade war, analyst Lorraine Hutchinson screened for retailers with the highest degree of sourcing exposure to both China and Vietnam in her coverage. Finding that Vietnam is the largest manufacturer of footwear and apparel in the firm’s coverage universe, she noted that relief from the tariff on the country could help the stocks rebound. Crocs is among the top names with sourcing exposure to Vietnam, according to Hutchinson, who estimated that 51% of the brand’s goods were sourced there in 2024. That stock has fallen more than 21% in the past week and sits around 47% below its 52-week high. Shares of the footwear company shed about 1% in trading Wednesday in the wake of Trump’s new tariffs taking effect. Athletic apparel company Lululemon – which sources 40% of its products from Vietnam – has also taken a hit in the past week, declining more than 12%. Shares have also fallen about 35% this year. For China, Hutchinson notes that discount retailer Five Below has nearly 60% sourcing exposure, including goods imported by domestic vendors. She also found that China accounts for a “majority” of the company’s 40% total direct imports. Shares have plummeted almost 32% in the last week and nearly 47% year to date, lagging the broader market in both periods. The stock now trades about 66% below its recent high. Skechers has comparable sourcing to China, with Hutchinson noting between 40% and 50% exposure to the country. That stock has similarly taken a beating recently, seeing a one-week loss of more than 22% and a year-to-date loss of more than 32%. Get Your Ticket to Pro LIVE Join us at the New York Stock Exchange! Uncertain markets? Gain an edge with CNBC Pro LIVE , an exclusive, inaugural event at the historic New York Stock Exchange. In today’s dynamic financial landscape, access to expert insights is paramount. As a CNBC Pro subscriber, we invite you to join us for our first exclusive, in-person CNBC Pro LIVE event at the iconic NYSE on Thursday, June 12. Join interactive Pro clinics led by our Pros Carter Worth, Dan Niles and Dan Ives, with a special edition of Pro Talks with Tom Lee. You’ll also get the opportunity to network with CNBC experts, talent and other Pro subscribers during an exciting cocktail hour on the legendary trading floor. Tickets are limited!
