Supreme Court Delays Decision on Trump's Tariffs, Potentially Impacting $260B Revenue
Written by Emily J. Thompson, Senior Investment Analyst
Updated: 1h ago
0mins
Source: seekingalpha
- Market Reaction: The Supreme Court's delay in ruling on Trump's tariffs has led to a broad sell-off in stocks like RH, Nike, and Lululemon, indicating market sensitivity to tariff policy uncertainty.
- Tariff Impact: The potential reversal of Trump's 'Liberation Day' tariffs could lower the statutory import tariff from 16.1% to 10.4%, significantly easing cost pressures on U.S. companies reliant on overseas manufacturing.
- Revenue Refund: If the ruling reverses the tariffs, the administration would be required to return approximately $260 billion in tariff revenue, which could have substantial implications for the federal budget and future fiscal policy.
- Current Import Rates: Presently, imports from India are taxed at 50%, 15% from the EU, and 10% from China, while Canada faces a 35% tariff, highlighting the ongoing pressures the U.S. faces in international trade.
Analyst Views on LULU
Wall Street analysts forecast LULU stock price to fall over the next 12 months. According to Wall Street analysts, the average 1-year price target for LULU is 193.95 USD with a low forecast of 120.00 USD and a high forecast of 350.00 USD. However, analyst price targets are subjective and often lag stock prices, so investors should focus on the objective reasons behind analyst rating changes, which better reflect the company's fundamentals.
25 Analyst Rating
2 Buy
22 Hold
1 Sell
Hold
Current: 211.900
Low
120.00
Averages
193.95
High
350.00
Current: 211.900
Low
120.00
Averages
193.95
High
350.00
About LULU
lululemon athletica inc. is a technical athletic apparel, footwear, and accessories company. The Company organizes its operations into four regional markets: the Americas, China Mainland, Asia Pacific (APAC), and Europe and the Middle East (EMEA). It conducts its business through a number of different channels in each market, including the Company-operated stores, e-commerce, temporary locations, wholesale, outlets, a re-commerce program, and license and supply arrangements. The Company offers a comprehensive line of technical athletic apparel, footwear, and accessories marketed under the lululemon brand. Its apparel assortment includes items such as shorts, tops, and jackets designed for a healthy lifestyle, including athletic activities such as yoga, running, training, and most other activities. It also offers apparel designed for being on the move and fitness-inspired accessories. It operates stores in the United States, Canada, China Mainland, Australia, South Korea and others.
About the author
Emily J. Thompson
Emily J. Thompson, a Chartered Financial Analyst (CFA) with 12 years in investment research, graduated with honors from the Wharton School. Specializing in industrial and technology stocks, she provides in-depth analysis for Intellectia’s earnings and market brief reports.
