 Tariff hit |
Source |
American Shipper |
Post Date |
06/04/2025 |
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Tariffs and a consumer slowdown put even more pressure onTarget.
The chain stocks more nonessential merchandise compared tocompetitors such as Walmart (WMT) and Costco (COST). More than half of Target? merchandise isdiscretionary and is at risk as consumers reign in sping.
Around 50% of Target? products are also imported fromoverseas, including an estimated 25% from China, leaving Target in a?hallenging position,?Steven Shemesh, an analyst at RBC Capital Markets, saidin a note Wednesday.
Tariffs may force Target to either absorb added costs,hurting its profit, or raise prices on consumers.
Home Depot said Tuesday that it plans to keep most of itsprices s, despite Trump? tariffs driving costs up. But tariffs may causeHome Depot to increase prices on items and eliminate some product linesentirely.
Walmart said last week that Trump?tariffs are ?oo high?and it will raise prices on some items, prompting anangry response from Trump.
?almart should STOP trying to blame Tariffs as the reasonfor raising prices throughout the chain,?Trump said over the week. ?etweenWalmart and China they should, as is said, ?AT THE TARIFFS,?and not gevalued customers ANYTHING. I?l be watching, and so will your customers!!!?
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