Target Sales Hit As Trump Tariffs Take Effect

Target has cut its full-year forecast after reporting a 5.7% drop in sales for the quarter ending in May, citing a “highly challenging environment” driven by new U.S. trade tariffs.

Target’s product mix leans heavily on non-essential goods like home decor and beauty items—many of which are imported from China. I Photo: Target Facebook

As BBC News’ Michael Race reported, the retailer also continues to face fallout from its earlier decision to drop diversity, equity, and inclusion (DEI) targets.

CEO Brian Cornell declined to confirm whether Target would raise prices in response to rising import taxes but acknowledged that sourcing more products domestically—and relying less on China—will be key.

“That is going to play a very important role,” Cornell said.

Unlike Walmart, which is bolstered by grocery sales, Target’s product mix leans heavily on non-essential goods like home decor and beauty items—many of which are imported from China.

Although the company has reduced its dependence on Chinese-made store-brand goods to 30%, down from 60% in 2017, analysts warn that tariffs will still be difficult to navigate.

President Donald Trump has ramped up tariffs since returning to office, in an effort to promote U.S. manufacturing and reduce reliance on imports.