Canadian Tire Says Unemployment ‘Biggest Concern’ About Tariffs
- Fourth quarter results missed estimates for EPS and revenue
- Canadian retailer ready to diversify away from US suppliers
The Hillside Canadian Tire store in Victoria, British Columbia, Canada.
Photographer: James MacDonald/BloombergThis article is for subscribers only.
Canadian Tire Corp. executives say their biggest concern regarding tariffs is the risk of heightened unemployment, rather than the effects of levies on retail prices, because only 15% of the company’s goods come from the US.
If the US imposes a 25% tariff on imports from Canada and Canada responds in kind, “it’s going to have broader implications for retail demand and lead to write-offs at the bank unless there’s some government intervention,” Chief Executive Officer Greg Hicks said during the retailer’s fourth quarter earnings call Thursday morning.