What Target Corporation told the SEC could break it.

Approximately one-half of the merchandise Target offers is sourced from outside the U.S. (directly or via vendors), with China as the single largest country of origin for imported goods, concentrating supply-chain and trade-policy exposure.

“Approximately one-half of the merchandise we offer is sourced from outside the United States, with China representing the largest country of origin for imported goods. We serve as the importer of record for most owned and exclusive, and certain national brand merchandise.”

Target relies on administrative functions in Bangalore, India for various business operations and runs global sourcing from offices in 13 countries; disruption in India (political/economic instability, pandemics, labor) could adversely affect operations.

“In particular, we rely on our administrative functions in India for various business operations and any events that negatively impact the availability or effectiveness of our administrative functions in India, including political or economic uncertainty or instability, the outbreak of pandemics or other illnesses, labor”

Target imports ~half its merchandise (China largest source) and faced 2025 IEEPA and other tariffs on China, India, Vietnam, and Bangladesh; a Feb 20, 2026 SCOTUS ruling found IEEPA tariffs unauthorized but established no refund process, leaving recovery and cost effects uncertain.

“U.S. tariffs imposed or threatened to be imposed on several countries in 2025, including China, India, Vietnam and Bangladesh, and any retaliatory actions taken by such countries have resulted, and could continue to result, in us incurring substantial additional costs to procure a large portion of the merchandise we offer and impact the margin rate for certain products, raising prices on certain products, and starting new vendor relationships in other countries.”

Target uses the first-sale declaration methodology (duties based on the price paid by its vendors rather than the importer-of-record price); duties and tariffs could rise substantially if U.S. Customs eliminates or limits this methodology, and the program may face inquiries.

“The amount of duties and tariffs that we pay to import merchandise could rise substantially if the U.S. government eliminates the availability of the first sale declaration methodology, if the requirements to utilize this methodology change, or if our ability to rely on this methodology is limited or eliminated.”