Dollar Tree Set to Make Shocking Moves Ahead of Donald Trump’s Comeback – What You Need to Know

President-elect Donald Trump’s tariff plans could result in a large increase in the existing prices of Dollar Tree products if he assumes office on January 20, 2025. When confronted with this circumstance, Dollar Tree CEO Michael Creedon stated during a press conference on Wednesday that if the price of the products is significantly impacted by Trump’s protectionist policies, they will either be changed in size or removed from shops entirely. The chain owns Family Dollar locations, which may possibly be impacted by these changes.

In a December 5 interview with USA Today, he stated, “We think there is a lot of possible steps we can take to help mitigate additional tariffs if and when they materialize.” Donald Trump has threatened to put 25% tariffs on imports from Canada and Mexico, with whom he has the USMCA, which by definition should not have tariffs, on multiple occasions throughout his second term as president. Given that a large portion of Dollar Tree’s inventory is sourced from China, KeyBanc Capital Markets estimates that these actions would impact 40% of the company’s sales. As it did during Trump’s first presidency, the chain said it has started an emergency strategy to deal with the situation, namely negotiating with suppliers to achieve pricing that will allow it to keep its products on the shelf or searching for alternative nations that can supply these goods.

“When we last addressed this issue in 2018 and 2019, we were able to reduce the potential impact by negotiating reduced prices with our suppliers, altering product specs or packaging sizes, or getting rid of products that weren’t cost-effective. We still have those three choices today,” Creedon stated. Other retail companies like Walmart and Best Buy, which have also hinted at potential price increases for the same reason, will also be impacted by this protectionist policy. Dollar Tree’s chief operating officer and interim CEO, Creedon, concluded, “We are ready to act on multiple fronts, even though the situation is still fluid and the precise nature, scope, and final timing of the new tariffs are still unclear.”