UBS: Tariff Impact Retail US Over 10,000 Stores Close

US President Donald Trump said earlier that he would impose tariffs on the remaining $300 billion in Chinese goods, and the potential threat should not be underestimated. UBS warned that if Trump continues to impose tariffs on China, the United States will have another 12,000 retail stores closed, involving $40 billion in sales, which is bound to hit the economy.

The 3125 store in the first quarter ended in 10 years.

UBS analyst Jay Sole said that in the first quarter of this year, the United States had closed 3,125 physical stores, the largest in 10 years. Sol continued, the market does not understand how difficult the physical store is now operating. The latest round of 25% tariff has seriously damaged the retail business, and the profit before taxation fell by up to 3%.

Chain effect first tired of shopping malls

The situation will speed up the closing of the store, even if 6,000 stores are closed, it will have a huge impact on the entire retail industry. Moreover, once the tariffs are fully imposed, 12,000 shops will be closed, and the impact will be even greater.

Sol estimates that large-scale store closures will result in a large amount of inventory needs to be transferred and reduced price promotions. Large shopping malls with difficult operations will be the first to close down, and healthy shopping malls will be dragged down by the chain reaction, which will hit employment and the entire economy.