Shares of Boot Barn (BOOT) took a sharp dive on Monday, plummeting 9.42% amid concerns over the potential impact of new tariffs on the clothing retail industry and fears of consumer spending pressures.

President Donald Trump's administration recently announced plans to impose a 25% additional tariff on imports from Mexico and Canada, as well as a 10% additional tariff on imports from China. While the immediate impact on clothing retailers may be limited, analysts warn that these tariffs could lead to price increases that could backfire with consumers.

According to analysts at BofA, "The consumer is not positioned to pay more for discretionary goods given pressures elsewhere in their budgets." Boot Barn, which sources 30% of its products from China and 25% from Mexico, could face significant pressure on its profit margins if it is forced to pass on the increased costs to consumers.