American Eagle Outfitters aims to reduce the impact of U.S. tariffs by over 60% by early 2026 through various strategies, including raising prices, negotiating supplier costs, and shifting sourcing from high-tariff countries. Executives revealed that these efforts have already led to a projected $70 million in tariff costs for the second half of the fiscal year, compared to $180 million without mitigation. The company plans to further minimize exposure by decreasing manufacturing in China and Vietnam, and is optimizing its supply chain as part of a broader growth strategy.

Source: https://www.supplychaindive.com/news/american-eagle-strategic-measures-slash-tariff-impact/801756/