Wed, 21 May 2025

Wed, 21 May 2025 Target sales hit as Trump tariffs take effect

The US chain reports a sharp fall in sales which it blames on a "highly challenging environment".

* Target's sales fell by 5.7% in Q2 due to a "highly challenging environment" caused by trade tariffs.
* The company's CEO, Brian Cornell, said pricing decisions would depend on efforts to source more products in the US and reduce reliance on China.
* Target sources around 30% of its store-label goods from China, which is down from 60% in 2017.
* Despite a truce with China, US import taxes on Chinese goods remain higher than before at 30%.
* The company now expects a low-single digit decline in annual sales, down from a previous forecast of 1% growth.
* Target faced backlash earlier this year over its decision to end diversity, equity and inclusion (DEI) targets, which it claimed played a role in its Q2 performance.
* CEO Cornell declined to comment on potential price rises due to higher import taxes, saying raising prices would be a "last resort".
* The company is looking to negotiate with suppliers and expand the number of suppliers beyond China to offset tariff exposure.
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