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As the 2025 World Economic Forum continues in Davos, Switzerland, Yahoo Finance Executive Editor Brian Sozzi interviews Gap (GAP) CEO Richard Dickson, discussing how the clothing company is preparing for potential tariffs under US President Donald Trump's second term.
Trump has threatened tariffs on all imports into the US, with higher tariffs on imports from foreign adversaries like China. Gap has shifted its supply chain away from China. "Our team has done an incredible job over the last several years diversifying our global manufacturing footprint," Dickson says, noting that "Less than 10% of our product is coming from China."
While tariffs could fuel inflation and raise prices for consumers, the CEO tells Yahoo Finance, "Ultimately, it's our job to figure out the value proposition and make sure that we present our consumers with the best product at the best price, with the best execution. He adds, "We're optimistic about the future of our brands and we're looking forward to working with the administration and dealing with all the various challenges ahead."
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Amid tariff concerns, Dickson says, "We are running our business as we need to with the right inventory and the right time, and it's a fundamental fix that, again, with the metrics that we put on the scoreboard, is a discipline that I'm feeling much more confident about."
Click here for more of Yahoo Finance's coverage from the World Economic Forum in Davos.
This post was written by Naomi Buchanan.