Nvidia Corp (NASDAQ: NVDA) continues to struggle with gaining upward momentum after President Trump announced new reciprocal tariffs on dozens of countries, including China, on April 2^nd.

China has already signalled plans of slapping retaliatory tariffs on American goods in response to Trump’s policy change, which may trigger a trade war between the world’s two largest economies.

Such a backdrop could hurt US firms with significant revenue exposure to China. Interestingly, one such name is the AI darling, Nvidia Corp, according to Goldman Sachs.

China’s contribution to Nvidia’s revenue

Goldman Sachs expects Sino-US trade tensions to be a meaningful headwind for NVDA as the Greater China region currently drives about 39% of its annual revenue.

Nvidia’s H20 chips, designed for export to China, have seen strong demand, especially from the country’s major tech companies like ByteDance, Tencent, and Alibaba.

However, the Trump administration continues to tighten restrictions on chip exports to Beijing that may also hurt the titan’s business moving forward.

Additionally, China has started advising its companies to avoid using Nvidia chips as they do not reportedly comply with the country’s latest energy efficiency requirements.

Put together, these factors related to Sino-US trade tensions could materially weigh on NVDA’s future revenue, added Goldman Sachs strategists in their recent report.

NVDA remains a Wall Street favourite

Despite new tariffs on China and the possibility of President Xi announcing retaliatory levies on American goods, Wall Street remains bullish on Nvidia stock.

The consensus rating on NVDA shares currently sits at “buy” with the mean target of about $176, indicating potential for some 70% upside from current levels.

That’s because many believe that Nvidia is still a rock-solid name in the AI market that Statista forecasts will grow at a compound annual rate of more than 26% through the end of this decade.

Plus, Nvidia now pays a dividend yield of 0.036%, which makes it attractive for income investors as well.  

LVS also has major revenue exposure to China

Other than Nvidia, Goldman Sachs sees casino stocks, particularly Las Vegas Sands Corp (NYSE: LVS), as most exposed to the Sino-US trade tensions in 2025.

LVS has a significant footprint in Macao, also known as the “Las Vegas of Asia,” due to its popularity as a gambling destination. The US casino and resort company currently has more than 60% of its revenue exposed to Macao.

Much like Nvidia, however, analysts are keeping bullish on Las Vegas Sands shares as well.

The consensus “buy” rating on LVS is coupled with a mean target of about $59 at the time of writing.

That translates to a potential for nearly 50% upside in the dividend stock that currently yields 2.56%.

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US President Donald Trump’s long-awaited unveiling of his trade plans, dubbed “Liberation Day,” has sent shockwaves through global markets, but what exactly is being liberated remains a subject of intense debate. Is it the US economy from global competition?

The US dollar from its position as the world’s reserve currency? Or perhaps, cordial relations with key trading partners?

While the full impact remains to be seen – with the 25% auto tariffs yet to kick in and the universal 10% tariffs scheduled to take effect April 5, followed by “reciprocal” tariffs on April 9 – the initial market reaction has been resoundingly negative.

Despite Trump’s optimistic pronouncements that “The markets are going to boom. The stock is going to boom. The country is going to boom,” the immediate aftermath was anything but celebratory for investors, who found themselves on the wrong side of a massive sell-off.

Panic on Wall Street: a flight to safety

After Thursday’s trading session, investors, far from feeling liberated, fled to the relative safety of bonds, seeking shelter from the storm unleashed by Trump’s policies.

The markets responded in brutal fashion.

• Stock market bloodbath: The S&P 500 plummeted 4.84%, and the Dow Jones Industrial Average slumped 3.98%, marking their largest declines since June 2020. The Nasdaq Composite plunged 5.97% for its worst session since March 2020.
• Small caps in bear territory: The Russell 2000 Index of small-cap stocks declined 6.59%, pushing it into bear market territory, defined as a 20% or more decline from a 52-week high.
• Bond market rally: The benchmark 10-year Treasury yield fell as low as 4% as investors piled into bonds, driving prices up.

The Magnificent Seven suffer a trillion-dollar wipeout

The tech giants known as the “Magnificent Seven” bore the brunt of the sell-off, collectively losing approximately $1.03 trillion in market capitalization, according to a CNBC analysis.

Apple shares were hit particularly hard, falling over 9% – their steepest decline in five years.

The fact that Apple’s supplier list is largely made up of countries disproportionately affected by Trump tariffs offers a compelling possible explanation.

Stagflation looming? Experts warn of economic peril

The market turmoil has stoked fears of stagflation, a toxic combination of slowing economic growth and rising prices.

Lindsay Rosner, Goldman Sachs’ head of multi-asset fixed income, warned CNBC that Trump’s tariff plan could slow growth and push up prices. JPMorgan economists go even further, predicting that Trump’s trade policies “would likely push the US and global economy into recession this year.”

This would place the Federal Reserve in a difficult position, forcing it to choose between combating inflation, stimulating growth, or standing aside and allowing events to unfold without intervention.

Global fallout: European markets slammed

The repercussions of Trump’s tariffs extended beyond US borders, with European stocks also taking a heavy hit.

The pan-European Stoxx 600 tumbled 2.57%, with major retail brands among the worst performers.

Shipping giant Maersk, often seen as a bellwether for global trade, plummeted 9.5%. In response, acting German Economy Minister Robert Habeck suggested that Trump would “buckle under pressure” and alter his tariff policies if Europe presented a united front.

As investors grapple with the fallout from the tariff news, the upcoming jobs report looms large. As one market strategist warned, a weak jobs report could be “a nail in the coffin for the US economy.”

While the European Union has been slammed with 20% duties, the UK was hit with a lower 10%, benefiting from its more balanced US trade relationship.

Most analysts agree that, from an economic perspective, there are few – if any – winners from the expected slowdown in growth and the fracturing of trade ties.

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The global fashion industry is grappling with the fallout from President Donald Trump’s announcement of sweeping new tariffs, the most comprehensive trade restrictions seen in nearly a century.

The move, which targets some of the largest apparel manufacturing hubs globally, has sent shockwaves throughout the sector.

In a statement from the White House Rose Garden, Trump unveiled a baseline tariff of 10% on all imported goods.

However, the levies are significantly higher for approximately two dozen countries with which the US maintains a trade deficit, many of which serve as major production centers for the fashion industry.

The tariff hit list: Vietnam, Cambodia, Bangladesh, China, and the EU

Vietnam, the second-largest apparel exporter to the US after China, will face a steep 46% tariff.

Cambodia will be subject to a 49% duty, while Bangladesh will incur a 37% tariff.

China’s existing tariff rate will be augmented by a new 34% levy, bringing its total tariff rate to 54%.

The European Union will be hit with a 20% duty.

“We are deeply disappointed by the Trump Administration’s decision to impose new tariffs on all imports,” the United States Fashion Industry Association said in a statement, underscoring the industry’s concern.

This action will particularly affect American fashion brands and retailers.

The tariffs, Trump declared, would take effect at midnight.

Fashion stocks plunge: Wall Street reacts to tariff news

The market reacted swiftly, with fashion stocks plummeting in after-hours trading. Lululemon shares dropped over 10%, while Nike and Ralph Lauren fell by 7%.

Tapestry, Capri, and PVH Corp. all experienced declines of around 5%.

These drops outpaced a nearly 4% dip in S&P 500 futures, highlighting the specific vulnerability of the fashion sector.

These new duties, following Trump’s earlier tariffs on goods from China, Mexico, and Canada, are poised to increase costs and create significant disruption for countless fashion businesses.

The US is a crucial market for apparel and footwear, importing more than 98% of its clothing and approximately 99% of its shoes.

This means that virtually every fashion item sold in the country will be subject to additional duties.

In his announcement, Trump displayed a chart outlining the countries and tariff rates, which he stated represented half of the tariff and non-tariff barriers they apply to the US.

The rates were notably higher than many analysts had anticipated.

The golden age of America: Trump’s vision and the reality for fashion

“We will pry open foreign markets and break down foreign trade barriers, and ultimately, more production at home will mean stronger competition and lower prices for consumers,” Trump asserted in his address.

This will be, indeed, the golden age of America, it’s coming back. We’re going to come back very strongly.

However, the realities for the fashion industry are likely to be far more complex.

The shocks are expected to reverberate throughout fashion’s global supply chain.

Following Trump’s previous tariff announcements, retailers like Walmart announced intentions to negotiate price cuts with suppliers, effectively shifting some of the burden downstream.

With factories already operating on thin margins, demands for further price reductions could have cascading effects, impacting textile makers and farmers.

Many brands and retailers will face the difficult choice of absorbing the higher costs or passing them on to consumers through price increases.

This comes at a time when many shoppers are already feeling the pinch from inflation and are carefully managing their budgets.

Before the new tariffs were even announced, the uncertainty surrounding Trump’s trade policies contributed to a decline in US consumer confidence, which fell in March to its lowest level since the pandemic.

“More tariffs equal more anxiety and uncertainty for American businesses and consumers,” David French, executive vice president of government relations for the National Retail Federation, told CNN.

Luxury, sports, and beyond: no sector is immune

While the tariffs will impact a broad spectrum of fashion businesses, some sectors may be particularly vulnerable.

The luxury market, for example, has seen the US as its most resilient region amid a global slowdown.

However, the lack of domestic production within the US means these brands will now face new costs.

Sports brands, which have actively diversified their sourcing away from China, now find themselves confronting cost spikes in alternative manufacturing hubs like Vietnam and Cambodia.

Ultimately, the entire fashion industry will feel the effects, even those businesses that produce finished goods in the US, as they often rely on imported raw materials.

Navigating this new landscape will present significant challenges in the months ahead.

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JPMorgan’s chief global economist has issued a stark warning about the potential consequences of President Donald Trump’s aggressive tariff policy, predicting that “There will be blood.”

In a research note published Thursday, JPMorgan’s Bruce Kasman, along with a team of company economists, cautioned that the probability of the global economy sliding into a recession has jumped from 40% to a concerning 60% following Wednesday’s “Liberation Day” tariff announcement.

Trump’s sweeping ‘Liberation Day’ tariffs impose a 10% levy on goods imported from all countries into the United States, with even higher tariffs slapped on 60 trading partners with persistent trade deficits with the US.

This includes major economic powerhouses such as China and Japan, as well as the European Union.

These tariffs come on top of existing duties already imposed on the United States’ top trade partners, Canada and Mexico, leading to widespread unease.

Decisively less business-friendly: a shift in US trade policy

“Disruptive US policies has been recognized as the biggest risk to the global outlook all year,” JPMorgan’s research note states.

The latest news reinforces our fears as US trade policy has turned decisively less business-friendly than we had anticipated.

The banking giant’s economists characterize tariffs as a “functional tax increase” on US household and business purchases of imported goods.

Economists and supply chain experts have previously warned that Trump’s tariff plan will likely result in higher prices for a wide range of goods, from everyday staples like coffee and sugar to apparel and major purchases such as cars and appliances.

A tax hike of historic proportions: the macroeconomic impact

JPMorgan’s analysts calculated that this week’s announcement, combined with earlier tariff increases, effectively raises the US average tax rate “by roughly 22%-pts to an estimated 24%,” equivalent to approximately 2.4% of the total value of all goods and services produced within the country, or GDP.

“A hike of this size would be on par with the largest tax hike since WWII,” the JPMorgan research note reads.

The effects could be amplified by retaliatory measures from other countries, a decline in US business sentiment, and disruptions to global supply chains.

Recession on the horizon? JPMorgan raises the alarm

“We thus emphasize that these policies, if sustained, would likely push the US and possibly global economy into recession this year. An update of our probability scenario tree makes this point, raising the risk of a recession this year to 60%,” the note continues, painting a bleak picture of the potential economic fallout.

However, JPMorgan’s economists offer a glimmer of hope, stressing that a nationwide or global recession “is not a foregone conclusion.”

Beyond the obvious point that policy actions may be changed in the coming weeks, we continue to emphasize that the US and global expansions stand on solid ground and should be able to withstand a modest-sized shock.

Despite this potential silver lining, the note emphasizes that JPMorgan’s economists “view the full implementation of announced policies as a substantial macroeconomic shock” — one that would be difficult to recover from if Trump’s policies persist.

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President Trump sent global financial markets tumbling down this week as he announced steep new tariffs on a whole bunch of countries, including a 34% duty on China and 20% on the EU.

Amidst the chaos, there are two US based retailers that actually stand to benefit from Trump’s trade policies: TJX and Ross Stores – according to Citi analyst Paul Lejuez.

Lejuez expects the aforementioned two retail stocks to outperform and end this year on a strong note.

Here’s why the Citi analyst is bullish on TJX and ROSS and what these two retailers have in stores for investors in 2025.

TJX Companies Inc (NYSE: TJX)

TJX shares have already rallied more than 10% over the past month, but the Citi analyst continues to see significant further upside in the discount retailer.

“Tariffs are likely to create significant disruption in the market, greatly increasing the availability of product available to off-pricers at attractive prices,” Paul Lejuez told clients in a research note.

Lejuez upgraded TJX stock this week to “buy” and raised his price target on it to $140 that indicates potential for another 12% upside from current levels.

The Citi analyst touted the retailer’s strong holiday season in his report, adding the momentum will likely continue as consumers trade down to discounters amidst fears of a recession ahead.

Additionally, TJX stock currently pays a dividend yield of 1.36% that makes it all the more attractive to own at current levels, especially if you’re betting on a slowdown in the back half of 2025.

Wall Street at large shares Paul Lejuez’s optimism on TJX Companies as evidenced in the analysts’ consensus “overweight” rating on the retail stock at the time of writing.

Ross Stores Inc (NASDAQ: ROST)

Citi is bullish on Ross shares amidst tariffs headwinds and the related concerns of a potential economic slowdown in the coming months for similar reasons as TJX Companies.

Plus, the American chain of discount department stores has lost more than 15% this year, which makes it relatively more attractive in terms of valuation as well.

“We view off-price as defensively positioned in the near term, but well-positioned for continued growth in the long-term as other retailers struggle and close stores,” he wrote in a report this week.

Paul Lejuez sees mounting challenges for retailers ahead, leading to potential store closures if tariffs weaken the overall consumer environment.

He raised ROST stock in his research note as well to “buy” and raised his price target to $146 that signals a well over 10% upside from current levels.

Much like TJX, Dublin-headquartered Ross Stores Inc also currently pays a dividend yield of 1.23% that makes it attractive for those interested in setting up a new source of passive income.

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