Target cuts annual forecast as tariffs, boycotts weigh on sales

Target imports 30 percent of its goods from China, and tariffs will weigh on its business [File: Ted Shaffrey/AP]

Target has slashed its annual forecasts amid a pullback in discretionary spending due to tariff-driven uncertainty and a backlash against shifts in its diversity, equity and inclusion (DEI) policy.

The United States big box retailer, which reported its first-quarter earnings on Wednesday, relies on China for 30 percent of its store label goods. While it is on track to reduce its dependency by another 5 percent by the end of the year, tariff-driven uncertainty has caused a slump.