Shares of the online furniture retailer Wayfair plummeted by 14.97% on November 6, 2024, as investors reacted to President-elect Donald Trump's proposed tariffs on imports from China.

During his campaign, Trump vowed to impose punitive tariffs exceeding 60% on Chinese imports if elected. This move could significantly increase costs for retailers like Wayfair that heavily rely on goods manufactured in China.

Analysts warn that companies with low pricing power, such as Wayfair, could face immense pressure if forced to absorb higher import costs or pass them on to consumers. "The common denominator is low pricing power and the potential for higher import prices, which could indirectly squeeze margins down the road," said Chuck Grom, managing director at Gordon Haskett Equity Research.

The sell-off in Wayfair's stock highlights the potential impact of Trump's trade policies on retailers and consumer goods companies with significant exposure to Chinese imports. If implemented, the proposed tariffs could disrupt supply chains, increase costs, and ultimately lead to higher prices for consumers.