Interior view of closed retail store in California on August 20, 2018. Photo: Smith Collection/Gado/Getty Images

Abercrombie & Fitch stock plunged 25% on Wednesday. JCPenney stock is trading at $0.80 per share, down from a high of $80 in early 2007. And Dressbarn is closing down entirely.

What to watch: Now comes the trade war. Hallmark doesn't expect to be able to exempt greeting cards from the next tranche of Chinese tariffs, according to an internal memo seen by Axios' Dan Primack.

  • Hallmark imports around $500 million worth of products from China each year, including plush toys and Christmas ornaments. That puts the potential tariff impact at more than $100 million, at least some of which the company expects to pass on to consumers.
  • "Hallmark and our suppliers cannot absorb the full impact of the increased cost," says the May 15 memo. "Despite all supply chain creativity, it will not solve the whole problem."

Why it matters: The trade war is already hurting retailers, if only in terms of the amount of time that company executives are being forced to spend on contingency planning. Worse is yet to come.

Go deeper: Trump's trade war sends retailers into a maelstrom

Go deeper

Updated 1 hour ago - Health

8 states set single-day coronavirus case records last week

Data: Compiled by Axios; Map: Danielle Alberti/Axios

8 states set new highs last week for coronavirus infections recorded in a single day, according to the COVID Tracking Project (CTP) and state health departments. Montana, West Virginia, and Wyoming surpassed records from the previous week.

Why it matters: Cases and hospitalizations are rising in Michigan, a state that initially fought the pandemic with strict mitigation efforts, alongside states that took less action against the spread of the virus this spring.

Updated 2 hours ago - Politics & Policy

Coronavirus dashboard

Illustration: Annelise Capossela/Axios

  1. Politics: Trump says if Biden's elected, "he'll listen to the scientists"Herd immunity claims by top Trump adviser are "pseudoscience," infectious-disease expert says.
  2. Map: 38 states, D.C. see surge in cases.
  3. Health: Coronavirus hospitalizations are on the rise — Fauci says he's "absolutely not" surprised Trump got coronavirus.
  4. Business: Consumer confidence surveys show Americans are getting nervousHow China's economy bounced back from coronavirus.
  5. Sports: We've entered the era of limited fan attendance.
  6. Education: Why education technology can’t save remote learning.
Dion Rabouin, author of Markets
4 hours ago - Economy & Business

The Fed is starting to question its own policies

Illustration: Aïda Amer/Axios

Several officials at the Fed are beginning to worry about asset bubbles and excessive risk-taking as a result of their extraordinary policy interventions, James Politi writes for the Financial Times, citing interviews with multiple Fed presidents and members of the Board of Governors.

Details: Some are now pushing for "tougher financial regulation" as concerns grow that monetary policy is "encouraging behavior detrimental to economic recovery and creating pressure for additional bailouts."