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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

Caitlin Owens, author of Vitals
3 hours ago - Health

Biden taps ex-FDA chief to lead Operation Warp Speed amid rollout of COVID plan

Photo: Alex Wong/Getty Images

President-elect Joe Biden has picked former FDA chief David Kessler to lead Operation Warp Speed, a day after unveiling a nearly $2 trillion pandemic relief plan that includes $400 billion for directly combatting the virus.

Why it matters: Biden's transition team said Kessler has been advising the president-elect since the beginning of the pandemic, and hopes his involvement will help accelerate vaccination, the New York Times reports. Operation Warp Speed's current director, Moncef Slaoui, will stay on as a consultant.

The case of the missing relief money

Illustration: Sarah Grillo/Axios

A chunk of stimulus payments is missing in action, thanks to a mix up that put as many as 13 million checks into invalid bank accounts.

Why it matters: The IRS (by law) was supposed to get all payments out by Friday. Now the onus could shift to Americans to claim the money on their tax refund — further delaying relief to struggling, lower-income Americans.

The post-Trump GOP, gutted

McConnell (L), McCarthy (R) and Trump. Photo: Erin Schaff-Pool/Getty Images

Republicans will emerge from the Trump era gutted financially, institutionally and structurally.

The big picture: The losses are stark and substantial.