Retail stocks such as Capri Holdings Limited CPRI and Ralph Lauren Corp RL are up Wednesday after President Donald Trump announced a 90-day suspension on reciprocal tariffs for countries that have not retaliated against the U.S., easing trade tensions for import-heavy sectors.
What To Know: Trump’s announcement excluded China, which instead will face an immediate 125% tariff hike. The decision triggered a broad rally across consumer and discretionary stocks, as investors saw relief for companies reliant on imported goods and global supply chains.
In a Truth Social post, Trump praised over 75 countries that he said followed his advice by avoiding retaliatory measures. Those nations will now benefit from a reduced 10% reciprocal tariff and a delay in further duties, offering temporary cost stability for retailers.
Treasury Secretary Scott Bessent addressed the policy in a White House press conference, calling it a long-overdue correction to global trade imbalances. He emphasized that the 10% tariff rate is a temporary floor meant to provide more predictability in international commerce.
Bessent also took aim at China, highlighting the trade deficit and accusing Beijing of acting in bad faith. He said the new tariff structure creates leverage for future negotiations and gives U.S. businesses room to breathe.
Price Actions: Capri Holdings shares closed Wednesday up 31.09% to $16.36 and Ralph Lauren Corporation closed up 14.28% to $208.37 at the time of publication, according to Benzinga Pro.
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