1 week Ago By Rod McNaughton - The Conversation
THREE KEY FACTS: Restoration Hardware’s share price plunged over 25% after Donald Trump announced new tariffs on imports. The tariffs, over 50% for some , caused higher costs and disrupted supply chains. Jacobs’ “import replacement” concept suggests cities grow by producing goods locally, not relying on tariffs.
When retail executives start swearing during earnings calls, something is clearly amiss. That’s what happened recently when the CEO of United States-based luxury furniture retailer Restoration Hardware saw his company’s share price plunge by more than 25% in after-market trading . The cause? Donald Trump had just declared “Liberation Day”, announcing sweeping new tariffs on nearly all imports.
For companies like Restoration Hardware – which rely on suppliers in China and Vietnam, and now face tariffs of over 50% – the impact was immediate: higher costs, disrupted supply chains and enormous uncertainty. New Zealand exporters were spared the worst, with exports facing only the 10% baseline tariff under the new regime. But the lesson is clear.
In today’s world, the real threat isn’t always direct exposure, it’s volatility..
