Canada Goose stock plummeted 6.21% in pre-market trading on Monday, as investors reacted to concerns over potential U.S. tariffs on imports from Canada that could significantly impact the company's business.
According to reports, the Trump administration is considering implementing a 25% tariff on imports from Canada, which would directly affect Canada Goose as the company manufactures nearly all of its down-filled coats in Canada.
While the company could potentially absorb some of the tariff costs or pass them on to consumers through price hikes, industry experts suggest that companies typically look to offset tariffs through a combination of strategies, including cost reduction measures.
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