Since announcing their controversial restroom policy in 2016, Target Corporation (NYSE:TGT) has mostly been a hot mess. Although TGT stock ended that year in the positive (barely at just under 4%), the first half of 2017 was a disaster.

Granted, transgender bathrooms from 2016 weren’t what was holding down the TGT stock price. Guidance provided at Target’s February 2017 investor day event sent the shares sliding. By June’s end, the shares were down almost 27%.

Still, I considered their political move an unforced error. Walmart Inc (NYSE:WMT) wisely sidestepped the issue to avoid offending their tradition-minded customers and female patrons concerned about their safety. Even in April of last year, the issue still tarnished Target’s image.

Now, another issue threatens Target stock. After a remarkable rally from the second-half of 2017, shares are stumbling amid fears of a trade war with China. President Trump drew first blood with tariffs on up to $60 billion against Chinese goods as retaliation for intellectual property theft and unfair business practices. China responded with their own retaliatory tariffs, sending the broader markets tumbling.

As a physical goods retailer, the geopolitical tensions obviously cause great concern. Prior to the recent escalation, Target — along with major retailers like Walmart, Costco Wholesale Corporation (NASDAQ:COST), and Best Buy Co., Inc. (NYSE:BBY) — urged Trump to reconsider imposing tariffs on China. Doing so “would raise the costs of basic household items and punish working families in America.” Meanwhile, retail stocks are just moving sideways, as evidenced by the flat performance since early February in the Market Vectors Retail ETF (NYSEARCA:RTH), which includes most of the merchants mentioned above in its top 10 holdings.

Obviously, the President didn’t listen. While China’s retaliation is measured, TGT and others have every right to worry. Love him or hate him, Trump is an enigma, typically shooting first and asking questions later. Diplomacy requires balance and composure, knowing when to fight, and when to parry. Trump is almost always on the attack, which threatens our international relations and the fortunes of retailers whose supply chains begin in China.

Caught Between a Rock and a Hard Place

The U.S.-China trade dispute hasn’t yet hurt the TGT stock price. Since the original tariff announcement, shares have largely moved sideways. If things continue to hold as they are, TGT can perhaps escape unscathed. But if it doesn’t, the company’s image problem is going to haunt them.

That’s because the big-box retailer has never been good with selling American-made products. Of course, that’s not a problem exclusive to Target. Previously, its key rival Walmart has claimed that they’ve increased their offerings of domestic goods, which hasn’t truly panned out.

Last year, both the Federal Trade Commission and consumer advocacy groups accused TGT of deceptive advertisements. The issue was that the company marketed several products as “Made in the USA” when in fact they were made in China or other foreign nations.

At the time, Target could get away with a slap on the wrist. Now, the situation is different. If things get ugly with China, TGT will have to raise prices on its goods. Should that occur, the situation could bring unwanted attention on their deceptive business practices, or worse: Trump’s Twitter-ings. Nothing riles conservatives more than corporations lying about their American-made goods, which would be another silly PR strike.

In my opinion, TGT stock hasn’t priced in the underlining company’s vulnerabilities. For instance, last year’s revenue came in 1% lower from four years ago. Compare that to Walmart, which has increased 3%.

Moreover, the retailer is having a tougher time moving product. On an annual basis, TGT takes about two months to turn their inventory. Also, that figure has increased over the past few years. In contrast, Walmart takes 42 days, a metric that has been steadily improving. Thus, any extracurricular disruption would probably hurt Target stock disproportionately.

TGT Stock’s History of Volatility

At this juncture, I’m not sure if I can trust the company. Management makes poor decisions and their stores are inefficient at moving product. More importantly, TGT stock has a history of volatility. With everything that’s going on right now, I don’t see much upside here.

I also don’t like what I’m seeing in the big-box retail sector. Walmart is down sharply this year. Big Lots, Inc. (NYSE:BIG), which is extremely inefficient at moving product, veritably cratered. The sector’s bright spot is Costco, and even that’s down in red ink.

Currently, TGT stock is the unlikely retail winner, but that distinction won’t last long. You can only fool the markets for so long before you’re forced to pay up.

As of this writing, Josh Enomoto did not hold a position in any of the aforementioned securities.