As trade tensions between the U.S. and China have continued to intensify, American retailers have been working to reduce their reliance on Chinese manufacturing.

In a May 21 earnings call, Target Chief Commercial Officer Rick Gomez said that the company has reduced the share of products it sources from China from 60% in 2017, to 30% today, with plans to further cut that total to 25% by the end of 2026. The Gap CEO Richard Dickson detailed similar plans in a May 29 earnings call, noting that while China used to be one of the retailer's top sourcing countries, it's expected to account for less than 3% of the company's products by the end 2025. Macy's CEO Tony Spring also estimated in a May 28 earnings call that 18% of products from national brands — which represent a majority of the retailer's sales — are sourced from China, down from 20% at the end of the last fiscal year. 

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Across all three brands, tariffs remain the common factor driving changes to sourcing strategies, with the bulk of concerns centering around China. And while President Trump has often been hesitant to move forward with planned tariffs, China has largely operated as the exception to that rule. That was seen firsthand in early April, when Trump stopped short of enacting sweeping levies against more than 60 countries, but kept 145% tariffs against China in place for weeks before agreeing to temporarily cut that number to 30% in mid-May while the two sides negotiate a new trade deal.

In some cases, simply moving production out of China has still failed to satisfy the demands of the Trump administration. Following a March announcement from Apple that it planned to move the vast majority of its iPhone production to India by the end of 2026, Trump called on CEO Tim Cook to move the company's manufacturing into the U.S. instead.