US EditionGap Inc. Faces the Tariff Tightrope: Strong Brands, Steep Costs
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3 Articles
Gap Inc. Faces the Tariff Tightrope: Strong Brands, Steep Costs
The Tariff Reality CheckGap Inc. just delivered a sobering lesson in modern retail economics. Despite posting solid Q1 results across key brands, the company warned investors that tariffs could slice $100 million to $150 million from operating income this fiscal year, even after mitigation efforts. The gross incremental cost? A staggering $250 million to $300 million.This isn’t just a Gap story—it’s a microcosm of the retail industry’s current p…
GAP and American Eagle would feel impact by Trump’s tariffs. Image: Valora Analitik. GAP and American Eagle, two major brands in the textile sector in the United States (USA) have warned about the impacts that their productions could have on Donald Trump’s new tariffs. They made it known in the most recent delivery of their financial results in the first quarter of the year. On the one hand, GAP said that new tariffs of 30% on imports from China…
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