Shrugging Off China Tariffs, Walmart and Target May Be This Season's Jolliest Retailers
Retailers Walmart (NYSE: WMT) and Target (NYSE: TGT) have significant exposure to China, which supplies 26% and 34%, respectively, of the products they offer (according to CNN, citing UBS). Given this, President Trump's threats to increase tariffs on imports from China might seem like a potential shakeup to the companies' earnings. But so far, neither retailer is feeling the pain, and grocery and online sales this holiday shopping season may continue to lift both companies.
The U.S. has hit China with tariffs on $550 billion worth of goods in a trade war that started more than a year ago, and China has retaliated with tariffs on $185 billion in U.S. products. If an agreement isn't reached, the Trump administration has threatened to increase tariffs further. While Walmart and Target are among the companies that have expressed concern over the situation in past months, neither retailer was focused on the issue as they reported third-quarter earnings.
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Source Fool.com
