📝 Auto Retailers Among Beneficiaries If Chinese Tariffs Are Rolled Back: UBS Strategy

Based on our conversations with experts, the

Best Buy and Williams-Sonoma likely source at least 35% of their goods from China (indirectly and directly).

Forty percent of Dollar Tree's sales come from imported products (along with 16% at Family Dollar Stores). With its move to a $1.25 price point well behind it, the desk does not think it would lower any prices moving forward (though, it would likely reinvest some of the savings in enhanced features and benefits).

Finally, auto part retailers all stand to gain as the industry would be less likely to roll back retail prices. Plus, 20-40% of the goods in this sector were probably subject to the tariffs. - UBS Strategy