Target calls CEO Brian Cornell’s meeting with Trump about tariffs ‘productive’

Target CEO Brian Cornell and other retail chiefs had a “productive meeting” about tariffs on Monday with President Donald Trump.

The meeting, which included Walmart CEO Doug McMillon and Home Depot CEO Ted Decker, was “to discuss the path forward on trade,” Target said in a statement. “We remain committed to delivering value for American consumers,” the statement continued.

A Target spokesperson declined to discuss specifics about the White House meeting.

Retail has the potential to be hit hard by Trump’s tariff plan, including the 145% levy already put on most goods from China.

About 50% of Target’s merchandise is imported, Rick Gomez, chief commercial officer for Target, said in the company’s fourth quarter earnings call.

The Minneapolis-based retailer sources from China 30% of items for its owned private-label brands, down from 60% in 2017, Gomez said.

Target executives said the company is continuing to diversify its countries of production, for example importing more goods from Guatemala and Honduras.

But the company has predicted flat comparable sales and lower profit margins for this fiscal year because of tariffs and other economic uncertainty.

Target is especially affected by consumer sentiment because nearly 60% of its merchandise sales are for what is considered nonessential goods, including beauty items, apparel and home furnishings.

In other words, if consumers tighten their discretionary spending, Target is hurt.

Plus, planning for tariffs is a “massive undertaking and requires both advance notice and substantial preparation,” said David French, executive vice president of government relations for the National Retail Federation (NRF), which lobbies for Target and other retailers.

Both Walmart and Target saw a decrease in foot traffic for February and March, according to data from Placer.ai. The most recent report for the week of April 7 shows a 4.7% drop in Target’s foot traffic. Walmart saw a 2.7% year-over-year increase.