Dollar Tree says U.S. tariffs could cut its second-quarter profits in half

Dollar Tree, a chain of discount stores, warned Wednesday that President Trump's import tariffs could lower its second-quarter earnings by as much as 50% compared to the year-ago period.

The Chesapeake, Virginia-based retailer sources most of its inventory, which ranges from disposable tableware, party supplies and toys to puzzles and clothing, from China, making it vulnerable to higher U.S. tariffs on the Asian economic giant.

Mr. Trump earlier this year imposed tariffs of 145% on Chinese imports, claiming Beijing hasn't taken sufficient steps to stem the flow of fentanyl into the U.S., before lowering the rate last month to 30% as the sides discuss trade issues. Even at the reduced rate, some businesses say the levies would make importing Chinese-made goods prohibitively expensive.