Kohl's Corporation (KSS) saw its stock price plummet 10.80% in Thursday's pre-market trading session, as investors reacted to President Trump's unexpected announcement of sweeping "Liberation Day" tariffs. The new tariff plan, which imposes a baseline rate of 10% on all US trade partners with additional tariffs on specific countries, has sent shockwaves through the retail sector.

The tariffs, set to take effect on April 5, are particularly harsh on key apparel and footwear sourcing markets such as China (34% tariff), Vietnam (46%), and Cambodia (49%). This move is expected to significantly impact retailers like Kohl's, which heavily rely on international suppliers for their products. Analysts warn that these tariffs could lead to higher prices for consumers and reduced profitability for retailers, as the entire sector faces potential profit margin pressures and supply chain disruptions.

The uncertainty surrounding the new tariff policy has led to a widespread selloff in retail stocks, with industry giants like Walmart and Target also experiencing significant drops. As Kohl's joins other major retailers in the downward trend, investors are showing concerns about the sector's ability to navigate these new challenges. The situation remains fluid as companies scramble to assess the full impact of these tariffs on their operations and explore potential mitigation strategies. Kohl's management will likely be closely watched for any updates or guidance regarding their strategy to navigate these new trade challenges.