A number of retailers are working to reduce their exposure to China as President Donald Trump's trade war with the second-largest economy rages on.
In recent earnings reports, executives have indicated that they are restructuring their supply chains to reduce reliance on China and mitigate the impact of tariffs. Trump sees tariffs as a way to boost domestic manufacturing, but avoiding China is challenging, and many retailers have already warned of potential price increases.
China has been a significant target of Trump's levies, with the U.S. slapping tariffs of 145% in April before temporarily reducing them to 30% for about 90 days as part of a temporary agreement with China.
However, Trump accused China of violating its temporary agreement, according to a Friday post on Truth Social.
"The bad news is that China, perhaps not surprisingly to some, HAS TOTALLY VIOLATED ITS AGREEMENT WITH US. So much for being Mr. NICE GUY!" Trump wrote, without explaining how China violated the agreement.
As tensions escalate, Macy's CEO Tony Spring told analysts on its earnings call Wednesday, the company is continuing to diversify the countries of origin for its private and national brands.
At the end of last fiscal year, Spring said about 20% of total Macy's, Inc. products originated in China. National brands, which represent the majority of its sales, sourced approximately 18% from China and its private brands, where it has more direct control of the supply chain, sourced roughly 27% from China. That's down from 32% last year and a rate of more than 50% pre-pandemic, according to Spring.