Target follows Walmart and Costco’s plan to pressure China over tariffs
The U.S. retailer is reported to have followed the lead of other major stores in its response to Donald Trump’s growing tariffs.
Target is reported to be pressuring Chinese suppliers to drop their prices, as American president Donald Trump levies growing tariffs on products exported to the U.S. from the Asian nation.
“Pick up half the costs”
The business news outlet Quartz reported this week that Target, a U.S. retail giant that operates nearly 2,000 hypermarket stores across the country, has asked suppliers to absorb major chunks of Trump’s tariffs.
Quartz quoted one Chinese supplier of hairpins and claw clips, which claimed that Target had asked the company to “pick up half the costs of the tariffs”.
When the supplier tried to negotiate, Target is alleged to have ended up terminating its relationship with the firm.
Tesla's huge brand damage, Walmart's manager pay, Target follows Costco: Business news roundup https://t.co/jzM6LZM1fL pic.twitter.com/DyVzGzFqJg
— Quartz (@qz) April 5, 2025
Trump bumps up China tariffs
At the time of Quartz’s report, Trump had imposed a 20% tariff on all Chinese imports to the U.S.
On Wednesday, the president then announced an additional 34% levy on goods from the country, as part of a sweeping package of “Liberation Day” tariffs imposed on trading partners around the world.
What percentage of Target’s products are from China?
Around 30% of Target’s products are Chinese-made - down from 60% in 2017 - the company’s executive vice-president, Rick Gomez, told an earnings call in early March.
The retailer’s apparent attempts to partly offload tariffs onto suppliers comes after the company predicted sales growth of just 1% in 2025, citing “tariff uncertainty” among the factors behind its modest expectations.
In recent weeks, it has also been reported that other major U.S. retailers, including Walmart and Costco, have sought lower prices from Chinese suppliers in the face of Trump’s tariffs.
China hits back with tit-for-tat tariff
On Friday, China retaliated to the president’s latest tariff announcement by unveiling reciprocal 34% levies on imports from the U.S.
“This practice of the U.S. is not in line with international trade rules, seriously undermines China’s legitimate rights and interests, and is a typical unilateral bullying practice,” read a statement by China’s finance ministry.
In response, Trump wrote on his social-media site Truth Social, per Reuters: “CHINA PLAYED IT WRONG, THEY PANICKED - THE ONE THING THEY CANNOT AFFORD TO DO!”
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