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Photo: Andrew Spear/Getty Images

Retail company shares were among the hardest stocks hit on Thursday after Trump's tariff announcement.

Why it matters: While previous tariffs mainly targeted components of consumer goods, the new tariffs will apply largely to things people buy directly. That will raise the cost of everyday purchases and force retailers to either increase prices or eat the cost of the tariffs, putting pressure on their margins.

By the numbers:

  • Best Buy shares fell nearly 11%, Gap and Kohl's dropped by almost 8% and Nordstrom stock ended the day nearly 7% lower.
  • "The S&P Retail index fell 3.4% versus the 0.9% decline for the general S&P 500," wrote Maria Halkias of the Dallas Morning News.

What they're saying: "The list of products these tariffs will hit are almost entirely consumer oriented," said the Retail Industry Leaders Association in a statement. "This new 10% tariff on Chinese imports is a direct hit on consumer products and family budgets, plain and simple."

  • "The tariffs imposed over the past year haven’t worked, and there’s no evidence another tax increase on American businesses and consumers will yield new results," the National Retail Federation said in a statement.

What's next? A report from Citi released in May estimated additional tariffs on the list of $300 billion worth of Chinese goods would be much worse for consumers than previous tariffs.

  • Goods included will represent 67% of total imports of consumer goods from China — as well as 66% of vehicles, 19% of industrial supplies and 38% of capital goods.

What to watch: Economists tell Axios that Trump's tariff announcement looks more like an attempt to sway the Fed into interest rate cuts than anything else.

  • Based on his previous tariff threats against Mexico that were quickly backtracked, there's worry the president is using Twitter more to manipulate those he sees as adversaries than to alert policy.

Go deeper

Ina Fried, author of Login
2 mins ago - Technology

Tech's race problem is all about power

Illustration: Eniola Odetunde/Axios

As problematic as the tech industry's diversity statistics are, activists say the focus on those numbers overlooks a more fundamental problem — one less about numbers than about power.

What they're saying: In tech, they argue, decision-making power remains largely concentrated in the hands of white men. The result is an industry whose products and working conditions belie the industry rhetoric about changing the world for the better.

Mayors fear long-lasting effects of COVID-19

Data: Menino Survey of Mayors; Chart: Axios Visuals

U.S. mayors tend to be an optimistic bunch, but a poll released Thursday finds them unusually pessimistic about prospects for post-pandemic recovery.

Why it matters: In a survey of mayors of 130 U.S. cities with more than 75,000 residents, 80% expect racial health disparities to widen, and an alarming number predict that schools, transit systems and small businesses will continue to suffer through 2021 and beyond.

Coronavirus hospitalizations top 100,000 for the first time

Expand chart
Data: The COVID Tracking ProjectHarvard Global Health Institute; Cartogram: Danielle Alberti and Andrew Witherspoon/Axios

More than 100,000 Americans are now in the hospital with coronavirus infections — a new record, an indication that the pandemic is continuing to get worse and a reminder that the virus is still very dangerous.

Why it matters: Hospitalizations are a way to measure severe illnesses — and severe illnesses are on the rise across the U.S. In some areas, health systems and health care workers are already overwhelmed, and outbreaks are only getting worse.