Target Has a Plan to Stop Tariffs From Impacting Prices

Despite what President Donald Trump has repeatedly said, tariffs are paid by the company importing goods, not the country where they were made. That generally raises the costs of the items being imported, an increase which normally gets passed on to consumers.

In some cases, however, the added cost can be partially, or even fully, absorbed by the vendor or retailer importing the goods. And Target (NYSE: TGT) has made it clear in a letter to vendors that it expects them to absorb the cost of the tariffs.

"As we look forward, Target will continue to keep guests at the heart of our strategy and continue to rely on your help and cooperation as tariff changes continue and uncertainty remains," wrote Target Chief Merchandising Officer Mark Tritton. "Target will not accept any new cost increases related to tariffs on goods imported from China. Our expectation is that you will develop the appropriate contingency plans so that we don't have to pass price increases along to our guests."

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Source Fool.com