Where are we now?
- The President has extended the Liberation Day tariffs deadline until August 1st, and said “No extensions will be granted” for this new deadline.
- The original 90 day pause was set to expire yesterday.
- The administration sent letters to 14 nations on Monday as well as 7 more today (Wednesday 7/9) disclosing their scheduled August 1st tariff rates, some of which have been revised from the original April 2nd “Liberation Day” rate.
- Notables include:
- Japan = 25% (orig. rate 24%)
- South Korea = 25% (no change)
- Bangladesh = 35% (orig. rate 37%)
- Indonesia = 32% (no change)
- Malaysia = 25% (orig. rate 24%)
- Head here for a complete list of the new as well as currently implemented tariffs and threatened tariffs.
Brand/store info, chatter, and company reactions:
- Amazon: CEO Andy Jassy said that despite the tariffs they have not “seen prices appreciably go up” – CNBC
- GAP / Old Navy / Banana Republic: They aren’t planning for “meaningful” price increases, yet tariffs could cost them $250 million – $300 million, but with mitigation efforts it could cost between $100 million and $150 million. – CNBC
- lululemon: Their CFO said the brand is planning to take “strategic price increases, looking item by item across our assortment” – Bloomberg
- Macy’s: Their CEO told CNBC that the heritage department store chain will be “surgical” with price changes, saying “There are going to be items that are the same price as they were a year ago. There is going to be… items that may be more expensive, and there are items that we might not carry” – CNBC
- Luxottica (Ray-Ban, Persol, LensCrafters, Sunglass Hut, Pearle Vision): They’re planning on raising prices “in the single-digit territory in the U.S.” – Reuters
- Also worth a read: “Inside America’s department stores, tariff-triggered price hikes are picking up” – CNBC
What about that court case which blocked the tariffs?
- The tariffs were reinstated pending appeal, and therefor the reciprocal (& “trafficking”/fentanyl tariffs) “likely will remain in effect for at least the next two months.” – WSJ
- The U.S. Court of Appeals for the Federal Circuit has scheduled arguments to start on July 31st.
Worth a listen for those interested:
And worth a watch as well: