American shoppers may soon face higher prices, with major retailers like Target and Best Buy anticipating cost increases in the wake of President Trump’s tariffs on imports from Canada, Mexico and China.
Target’s CEO Brian Cornell told CNBC that customers could see price hikes ‘over the next couple of days’ following the tariffs’ implementation.
Although tariffs on imports from Canada and Mexico were delayed for a month due to border security negotiations, Cornell highlighted that the price of fresh produce could rise, as a significant portion of these goods is sourced from Mexico during the winter months.
“We’re going to try to make sure we can do everything we can to protect pricing. But if there’s a 25% tariff, those prices will go up,” he said.
Electronics giant Best Buy also expects prices to rise due to the tariffs, which could persist throughout the year.
“We’ve never seen this kind of breadth of tariffs. This, of course, impacts the whole industry,” Corie Barry, CEO of Best Buy, said on an analyst call, according to CNN.
Barry noted that the price hikes would likely be passed from vendors to retailers, ultimately increasing costs for consumers.
Additionally, Matt Bilunas, CFO of Best Buy, raised concerns about consumer reactions to these price hikes.
“The giant wildcard obviously is how the consumers are going to react to the price increases in light of a lot of price increases potentially throughout the year and a general consumer confidence that is showing a little signs of weakness at the moment,” he said.
With China and Mexico as its primary suppliers, Best Buy anticipates the tariffs will have a lasting impact on its pricing structure.
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