The US retail sector is now preparing to strategize for Trump's latest tariff hike of up to 145% on goods from China.
The sector is being hit by a hurricane after many goods are now in the alarm zone as their stocks are dwindling due to cargo shipments that have fallen by 60% since April.
Retail giants such as Walmart and Target have begun warning of the possibility of empty shelves and price hikes in the near future due to the ongoing tariff turmoil.
This is reinforced by a warning from Torsten Slok, chief economist at Apollo Management, that this could be the starting point for a full-blown supply chain collapse that could trigger job losses in logistics, retail and more.
While there are signs that tariffs may be eased, the damage may already be too great.
If this situation continues, experts do not rule out the possibility that the US economy will face a recession sooner than expected.
