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Dip in retail stocks amid border tax concerns is a buying opportunity, traders say

The "Fast Money"traders said the dip in retail stocks amid concerns about a tariff on Mexican imports may be a buying opportunity.

A key retail ETF fell 1 percent Friday after the Donald Trump administration suggested a 20 percent border tax on Mexican imports could pay for a wall on the U.S.-Mexico border.

Even if approved, trader Steve Grasso said the border tax will take a long time to implement. In the mean time, Grasso said he's getting into the retail sector with the SPDR S&P Retail ETF.

Trader Tim Seymour said that there's an opportunity to buy these stocks any time sentiment is low. Seymour said he likes Macy's. Shares of Macy's are down 18 percent year to date.

Trader Guy Adami said he likes Nordstrom and that the stock could get a substantial bump before it reports earnings on February 16. Nordstrom shares are down more than 10 percent year to date.

Trader David Seaburg said he also likes Nordstrom. He said he thinks the border tax will not go through because it will hurt U.S. consumers.

People carry retail shopping bags during Black Friday events on November 25, 2016 in New York City.
Getty Images
People carry retail shopping bags during Black Friday events on November 25, 2016 in New York City.

Disclosures:

GUY ADAMI

Guy Adami is long CELG, EXAS, GDX, INTC. Adami's wife, Linda Snow, works at Merck.

STEVE GRASSO

Steve Grasso's firm is long AGN, BIIB,CHK, COG, CUBA, DIA, FCX, ICE, KDUS, MFIN, MJNA, MSFT, NE, REGN, RIG, SPY,TITXF, VIRT,WDR, WLL, ZNGA. Grasso is long: CHK, EEM, EVGN, GDX, KBH,MJNA, MON, MU, OLN, PFE, PHM, QCOM, SPY, T, TWTR. GRASSO'S KIDS OWN: EFA, EFG,EWJ, IJR, SPY. NO SHORTS.

DAVID SEABURG

DAVID SEABURG: Opinions expressed by David Seaburg are solely his own and do not reflect the views and opinions of Cowen Group, Inc. David Seaburg and Cowen have a financial interest in EDIT. Diamond Offshore: an employee of Cowen and Company, LLC serves on the Board of Directors of Diamond Offshore

TIM SEYMOUR

Tim Seymour is long ABX, APC, AVP, BAC, BBRY, C, CLF, CVX, DO, DVYE, EDC, EWN, EWZ, F, FB, FCX,FXI, GM, GOOGL, GE, INTC, LQD, MOS, MCD, MUR, OIH, PG, RACE, RAI, RH, RL, SINA,SQ,T, TWTR, VALE, VZ, XOM. short: EEM, SPY, XRT; Tim's firm is long ABX, BABA, BIDU, CBD, CLF, EEM, EWZ, F, KO, MCD, MPEL, NKE,PEP, PF, TCEHY, SAVE, SBUX, SINA, VALE, VIAB, WMT, WEN, X, YHOO, short EWG,HYG, IWM