Short sellers bet against ASX retailers amid Trump tariff whiplash
ASX retailers ranging from ecommerce play Cettire to furniture retailer Nick Scali and more could be hit by second order effects from a US trade war with China.
Short sellers are betting Australian retailers will be among the biggest victims on the ASX from Donald Trump’s punitive trade war with China.
With Chinese exports to the US remaining subject to 145% tariffs, the world’s largest manufacturer is expected to redirect its goods to other markets. That could have significant implications for e-commerce platforms and other retailers selling those goods in Australia.
“Something we've been thinking about is what happens to gross margins in the short term with the weak Australian dollar, and what happens in the medium term to sales if US-bound goods find their way into the Australian market,” QVG Capital principal and portfolio manager Chris Prunty told Capital Brief.
“It can't be good for local e-commerce companies.”
Prunty declined to name specific ASX stocks but fresh ASIC data suggests hedge funds and other short sellers have already begun identifying the most vulnerable.
