Report: Five Below Suspends Shipments From China Due to Tariffs

Discount retail chain Five Below reportedly suspended cargo shipments from China due to the trade war between the country and the U.S.

A shipping company used by the retailer told suppliers that Five Below suspended its cargo shipments, that no containers should be delivered to the yard starting Thursday (April 10) and that containers already loaded should be unpacked and returned to the carrier, Bloomberg reported Friday (April 11), citing a letter sent by the shipper to suppliers.

It is not clear if the letter went to all Five Below vendors, or only some, according to the report.

Reached by PYMNTS, Five Below said in an emailed statement that it has paused orders from China while it evaluates its options for mitigating the tariffs.

“Five Below is committed to providing the best trend-right products our customers want and need at a great price,” the statement said. “We are utilizing several tools to help mitigate tariffs and swiftly assessing the best of many available options for us to continue to bring forward great product at superior value in the current climate. In order to ensure maximum flexibility, we proactively paused orders from China given the escalation in the tariffs as we evaluate all options.”

The most recent tariff increases announced by the U.S. likely pose costs of 90% to 95% for Five Below, the Bloomberg report said, citing an estimate from Oppenheimer analyst Brian Nagel.

Five Below Chief Financial Officer and Treasurer Kristy Chipman said in March that 60% of the retailer’s total cost of goods are imported from China, either directly or through its domestic vendors, PYMNTS reported at the time.

“We are dealing with the tariffs that are in place today and our mitigation initiatives are well under way,” Chipman said March 19 during the retailer’s quarterly earnings call. “These initiatives include vendor collaboration, selective price adjustments primarily within our $1 to $5 price points, diversification of sourcing and increasing our focus on product newness.”

Global container bookings dropped 49% when the period of April 1-8 is compared to the previous week, March 24-31, the Bloomberg report said, citing an estimate from Vizion.

In a blog post announcing that finding, Vizion said that data shows how global shippers are reacting to changes in tariffs.

“This dramatic drop aligned with two key developments: the April 4th U.S. tariff announcement, followed by China’s retaliatory measures announced on April 5th,” the post said. “The result? A widespread booking freeze, as shippers paused mid-shipment cycle to reassess costs, timelines and broader trade strategy.”

The biggest drops have been seen in discretionary or seasonal categories, the post said.

It was reported April 9 that Amazon canceled orders from multiple vendors in China and other Asian countries after President Donald Trump’s April 2 announcement that the U.S. planned to levy tariffs on goods from more than 180 countries.