Retailers' margins stand to gain from Trump tariffs, Forsyth Barr says

The Warehouse and Warehouse Stationery are in line for margin relief. (Image: Jason Oxenham)

Thu, 24 Apr 2025

Forsyth Barr analysts say New Zealand’s listed retailers stand to benefit from a trade war between the world’s two largest economies. If trade between China and the United States slows, surplus manufacturing capacity in China will reduce sourcing costs for retailers, said Paul Koraua and Rohan Koreman-Smit in an investor note. “Based on our estimates of Chinese-based sourcing above, we estimate that a 1% decrease in China sourcing costs could increase gross margins across the sector by 15-40 basis points (bps)...

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