Five Below Reportedly Halts Shipments From China Amid Trump's Trade War: Retail Turns Bearish

Amazon has also reportedly canceled some orders from Asia as companies review their import plans.

Five Below, Inc (FIVE) has reportedly halted partial or complete shipments of goods from China amid the escalating trade war between the U.S. and the Asian nation.

According to Bloomberg News, which cited a memo, the U.S. retailer of budget toys and crafts is turning away shipments waiting in China before being sent to the U.S.

Shipping giant A.P. Moller-Maersk A/S reportedly sent a letter to Five Below suppliers stating that the company has elected to suspend its cargo shipments. It was unclear if the memo was sent to all of the company's suppliers or a subset.

American companies are increasingly reviewing their imports, particularly from China, after President Donald Trump announced sweeping tariffs last week.

Trump postponed most of those tariffs for 90 days this week, while raising the duties on Chinese goods to 145%.

China, on its part, has imposed reciprocal tariffs on American goods landing in the country.

Bloomberg News reported earlier this month, citing an internal document, that e-commerce giant Amazon is among the retailers that have begun cancelling orders from China and other parts of Asia.

Five Below sells trendy products for $5 or less, targeting teens and tweens. It operates over 1,700 stores, offering toys, tech accessories, beauty items, and seasonal goods. China is the company's largest source of imported merchandise.

On Stocktwits, retail sentiment turned 'bearish' from 'bullish,' and message volume dropped to 'low' from a day earlier.

One user noted that it was hard to be bullish on companies that rely on Chinese imports.

Last month, Five Below reported fourth-quarter earnings and issued a quarterly forecast above analysts' projections.

FIVE shares are down 41.2% year to date.

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