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U.S. economy is still growing, ISM says, but Trump tariffs cause ‘great uncertainty’ and more inflation - MarketWatch

1. U.S. service economy grew in February, signaling expansion despite tariff concerns. 2. Executive uncertainty regarding tariffs may impact future consumer prices at retailers. 3. Target executives warned that tariffs could slow the economy and raise consumer prices. 4. Inflation index rose for the third consecutive month, indicating rising costs. 5. Market reacted mixed, with stocks falling in response to tariff news.

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FAQ

Why Bearish?

Tariffs can impose significant costs on retailers like Target, impacting margins. Similar historical instances show economic slowdowns often hurt retail performance.

How important is it?

The article focuses on tariff impacts, directly concerning TGT's operational costs and pricing strategies.

Why Short Term?

Immediate effects of tariffs may be felt quickly in pricing. Seasonal buying cycles could amplify short-term impacts on TGT's sales.

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