The mechanism: Section 301 tariffs on Chinese goods remain the live wire in U.S. retail margins. Rates on non-exempt Chinese imports have swung between roughly 30% and higher "reciprocal" levels this year under the ongoing U.S.-China trade arrangement, with USTR extending some exclusions to November 2026 while leaving broad categories — housewares, toys, seasonal decor, textiles — fully exposed. Every retailer that sources cheap, private-label goods from China eats these costs somewhere: supplier concessions, price hikes, or margin. But "dollar stores get hurt by tariffs" is a lazy headline. The real split is in the mix, and it cuts against Dollar General far more than Walmart.