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Trump’s New Chinese Tariffs Are Hitting Dollar Tree Stores

October 8, 2018, 6:52 PM UTC

President Donald Trump’s new 10% tariff on Chinese imports is impacting low- and middle-income customers somewhere you might not expect: Dollar Tree.

Unlike previous tariffs that targeted industrial goods, the new duty enacted last month hits consumer items, many of which are sold at Dollar Tree and Family Dollar’s 15,000 locations across the country. The increased cost is forcing the company to reconsider carrying some items, which now have a significantly smaller margin. Over time it may also impact the chain’s ability to hire new employees or open new locations.

Dollar Tree imports 42% of its products, most of which are from China. The new tariffs impact 10% of the store’s inventory, which adds up to several thousand items spanning hardware, electronics, food, household, and health and beauty products, USA Today reports.

And it’s only just the beginning. The tariff is expected to rise from 10 to 25% on Jan. 1. Ultimately that could lead to the stores offering fewer items on their shelves, or offering smaller packages of the same items for the same price.