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If the 10% China tariffs that took effect on February 4 remain in place for the full year, the retailer anticipates a roughly 1-percentage-point drag on comparable sales from Q2 through Q4. A strong finish to 2024: Tariff-related news cast a shadow over Best Buy鈥檚 stronger-than-expected close to the year.

China is no longer the growth engine it once was, as the country鈥檚 economic doldrums and changing consumer tastes dampen sales. While there are pockets of opportunity in emerging markets like India, Thailand, and the Middle East, global economic uncertainty is taking its toll on luxury sales. Go further: Read our reports on US Luxury Consumers and Their Path to Purchase and Luxury Ecommerce.

The president鈥檚 latest promise to go through with Mexico and Canada tariffs, slap an additional 10% levy on Chinese imports, and introduce reciprocal tariffs in April will only heighten the unpredictability companies face.

The end of de minimis also exposes Amazon to higher tariffs, since the items for sale on Haul largely originate from China. For the time being, however, Europe is a more hospitable market for retailers reliant on China imports, given that it does not (currently) have broad tariffs in place.

Alibaba鈥檚 domestic ecommerce growth signals promise for China鈥檚 retail landscape: However, price-conscious consumers and a trade war could derail recovery.

LVMH fell short in Q3 as Chinese consumers鈥� pessimism hurt sales: The luxury conglomerate missed revenue expectations as economic uncertainty caused shoppers to pull back.

TikTok鈥檚 return to US app stores drove a 91% decline in downloads for RedNote, the rival Chinese social app that became the most downloaded free app on US app stores last month. RedNote is struggling to retain users despite maintaining a 25% higher daily active user count than before TikTok鈥檚 removal.

The news: Taiwanese PC-maker Acer, which manufactures PCs in China, will raise US laptop prices by 10%, reflecting the Trump administration鈥檚 new 10% tariff on Chinese imports. Acer CEO Jason Chen confirmed that the price hike will be applied across Acer鈥檚 lineup of computers, tablets, and servers, potentially adding anywhere between $20 and $380 per device in the coming weeks.

The loss of the de minimis loophole will push Shein鈥檚 already razor-thin profits to the breaking point, despite the marketplace鈥檚 attempts to minimize the impact by investing in local warehouses and fulfillment networks and incentivizing suppliers to shift production outside of China.