Target Corp (NYSE:TGT) received temporary relief Thursday when President Donald Trump announced a month long delay on tariffs for Mexican imports covered by the United States-Mexico-Canada Agreement until April 2, just days after the retail giant warned of “meaningful year-over-year profit pressure” due to trade uncertainty.

The retailer, with nearly 2,000 stores nationwide, remains particularly vulnerable to trade disruptions with more than three-quarters of its sales coming from general merchandise like apparel, electronics and home decor—much of it imported, according to the Financial Times.

Don't Miss:

• Dogecoin millionaires are increasing – investors with $1M+ in DOGE revealed!
• It’s no wonder Jeff Bezos holds over $250 million in art — this alternative asset has outpaced the S&P 500 since 1995, delivering an average annual return of 11.4%. Here’s how everyday investors are getting started.
  
  
  

Target told investors during its earnings call Tuesday that it expected substantial profit challenges in the first quarter, citing “tariff uncertainty” among several factors alongside weakening consumer confidence and declining February sales. The company’s forecast of “around flat” comparable sales for 2025 would mark a third straight year of stagnant or declining sales performance.

“During February, we saw record performance around Valentine’s Day. However, our top-line performance for the month was soft, as uncharacteristically cold weather across the US affected apparel sales, and declining consumer confidence impacted our discretionary assortment overall,” Jim Lee, Target’s chief financial officer, told investors.

Trending: If You're Age 35, 50, or 60: Here’s How Much You Should Have Saved Vs. Invested By Now

While Trump’s tariff postponement offers temporary breathing room, the underlying business challenges remain. Target’s shares have declined nearly 35% over the past year, significantly underperforming compared to the 12.25% rise in the S&P 500, as inflation-strained consumers pull back on discretionary spending.

Commerce Secretary Howard Lutnick indicated that Canadian tariffs might also see a similar postponement, though no official announcement had been made by late Thursday, CNN reported.

Trump announced the Mexican tariff delay after speaking with Mexican President Claudia Sheinbaum, writing on Truth Social that it was “an accommodation, and out of respect for, President Sheinbaum.”

See Also: The average 401(k) balance soars to a record-breaking high – Here's how to know if your nest egg is keeping pace.

The delay pushes the tariff implementation to April 2, contingent on Mexico and Canada showing “significant progress” in addressing border security and fentanyl trafficking concerns—leaving retailers like Target in continued uncertainty, according to CNN.

For Target, which reported fourth-quarter net profit of $1.1 billion—near the high end of its guidance—the respite may provide time to adjust supply chains, but the fundamental challenges of shifting consumer spending patterns, increased competition from Walmart (NYSE:WMT), and overall retail sector pressures continue, the FT reported.

Read Next:

• BlackRock is calling 2025 the year of alternative assets. One firm from NYC has quietly built a group of 60,000+ investors who have all joined in on an alt asset class previously exclusive to billionaires like Bezos and Gates.
• Many are surprised by Mark Cuban's advice for lotto winners: Cash or annuity?

UNLOCKED: 5 NEW TRADES EVERY WEEK. Click now to get top trade ideas daily, plus unlimited access to cutting-edge tools and strategies to gain an edge in the markets.

Get the latest stock analysis from Benzinga?

• WALMART (WMT): Free Stock Analysis Report
• TARGET (TGT): Free Stock Analysis Report

This article Target Gets Breathing Room As Trump Delays Tariffs, But Profit Concerns Remain originally appeared on Benzinga.com

© 2025 Benzinga.com. Benzinga does not provide investment advice. All rights reserved.