1407 ET - Target is increasing its manufacturing capacity in Central America to be able to respond faster to supply chain needs as it prepares for the effects of 25% tariffs on Mexico and Canada, and an extra 10% tariff on Chinese imports. "We're expecting some outsized profit pressures in this year's first quarter compared with the rest of the year," CFO Jim Lee says on a call with analysts. The retailer is spreading its supply chain network across other Asian countries, and Latin American countries such as Guatemala and Honduras. The goal is to provide affordable options to consumers, Target says. Shares fall 3.4%. (sabela.ojea@wsj.com; @sabelaojeaguix)
(END) Dow Jones Newswires
March 04, 2025 14:08 ET (19:08 GMT)
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