Gap Falls 21% After Warning Tariff Hit Could Reach $300 Million

Gap Inc. slumped on Friday after the apparel retailer predicted a tariff impact of as much as $300 million, offsetting better-than-expected results at its biggest brands.

The shares fell 21% at 11:21 a.m., the most intraday since US President Donald Trump announced sweeping tariffs in early April. The drop erased Gap’s year-to-date gain.

On Thursday, Gap said tariffs could result in a $250 million to $300 million hit if they remain at current levels of 30% for most goods from China and 10% for other countries. The retailer said it has strategies to mitigate more than half of that cost. ...