Dollar Tree could drop some products if tariffs are enacted
foxbusiness.comSW Retail Advisors founder Stacey Widlitz breaks down the latest news from the retail sector as companies prepare for the holiday season.
Dollar Tree said Wednesday it may adjust or even eliminate certain products if President-elect Trump’s proposed tariffs take effect.
The discount retailer, which has high exposure to China, told analysts it has a «wide range of potential actions» it can take to mitigate additional tariffs if they materialize, including changing product details or sizes and even getting rid of items altogether if they become too expensive.
Under the proposals, a universal 10%-20% tariff would be imposed on imports from all foreign countries, and an additional 60%-100% tariff would be imposed on imports specifically from China. Last month, Trump reiterated the threat, saying he would issue an executive order upon taking office to charge Mexico and Canada a 25% tariff on all products coming into the U.S.
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Dollar Tree said the last time the retailer faced this issue, in 2018 and 2019, it adjusted its products and negotiated lower costs with suppliers.
«Those options are still at our disposal,» Interim CEO Michael Creedon told analysts on an earnings call Wednesday. «On top of those, we now have detailed plans in place to shift supply sources for most of our products to alternate countries, and multi-price gives us additional flexibility on our product assortment.»
A Dollar Tree store in Kingston, N.Y., Feb. 16, 2024. (Angus Mordant/Bloomberg via Getty Images / Getty Images)
According to a regulatory filing, Dollar Tree directly imports as much as 43% of its total retail value purchases, with the vast majority from China.
«China is the
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