Retailers such as Nike and Walmart have been preparing for a while but will still face negative impacts from tariffs. President Trump introduced a 10% baseline tariff for all countries starting April 5, with an additional 60 countries facing higher tariffs from April 9. Companies like Nike, Walmart, Target, and Dollar Tree saw their stock prices fall after the announcement.

Retail experts like Neil Saunders from GlobalData and Jonathan Gold from the National Retail Federation emphasized the significant effects of the new tariff regime. Retailers had limited time to plan and adapt to these changes, making it challenging to mitigate the increased costs effectively.

Efforts to shift production outside of countries like China, Mexico, and Canada are becoming less effective due to the high tariffs imposed on other major exporting countries. This situation is expected to impact retailers' margins initially until they find ways to counteract the tariff pressures.

Retailers are exploring various strategies such as diversifying their sources, adjusting product offerings, and negotiating prices to navigate the new trade landscape. Companies like Walmart, Costco, and Target have already begun diversifying their supply chains to mitigate the impact of the tariffs.

Analysts noted that while the market had factored in some tariff risks, it may not have fully accounted for the extent of the potential impacts. Higher tariffs could lead to decreased earnings estimates and affect stock valuations. For instance, Walmart's forward price-to-earnings ratio is at 33.56, with the possibility of earnings estimates decreasing further if tariffs exceed expectations.