(Reuters) - Macy’s Inc said on Wednesday the recent hike in U.S. tariffs on Chinese goods will hurt its furniture business of the department store operator.
U.S. President Donald Trump escalated the trade war by raising tariffs on $200 billion worth of Chinese goods to 25% from 10% last Friday. This was in addition to the already imposed 25% tariff on $50 billion worth of Chinese imports.
Macy’s Chief Executive Officer Jeff Gennette said the potential fourth tranche of tariffs that would be placed on all Chinese imports will impact both its private and national brands.
“This potential fourth tranche of tariffs was not contemplated when we provided the annual guidance,” Gennette said on a post-earnings call.
Shares of the company, which rose about 2%, fell 1%.
Reporting by Aishwarya Venugopal in Bengaluru; Editing by Arun Koyyur