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- Target, Best Buy CEOs warn of price increases as tariffs take effect (foxbusiness.com)
Tariffs Threaten to Hike Prices for Consumers, Target and Best Buy CEOs Warn
American consumers could soon be paying more for everyday goods as new tariffs take effect. Both Target and Best Buy’s chief executives cautioned this week that the tariffs imposed on goods from countries like Mexico and China will likely lead to price increases.
Target CEO Brian Cornell stated that consumers will “likely see price increases” in the coming days, particularly on produce. Target relies heavily on Mexican imports for fruits and vegetables, making the impact of the new tariffs almost immediate. During the company’s earnings report, Cornell also warned of anticipated profit pressures in the first quarter due to “tariff uncertainty.”
Best Buy CEO Corie Barry shared similar concerns. She emphasized the critical role international trade plays in the electronics industry, highlighting that China and Mexico are the company’s top two product sources.
While Best Buy’s direct imports are low, Barry anticipates vendors will pass increased costs down to retailers, ultimately affecting consumers. “Price increases for American consumers [are] highly likely,” she stated.
These warnings follow earlier concerns raised by other major retailers, including Dollar Tree and Walmart, about the potential impact of tariffs on product costs and availability. Dollar Tree, with significant exposure to Chinese imports, has suggested potential changes to product offerings if costs become prohibitive.
Walmart also expressed concern about increased costs for customers already grappling with inflation. Even financial analysts, such as Goldman Sachs, have cautioned about the potential for tariffs to increase costs for consumers.
The new tariffs, which target goods from Canada and Mexico, as well as increase existing levies on Chinese imports, went into effect this week. They are part of a broader effort to address issues such as drug trafficking and illegal immigration. The move has sparked retaliatory tariffs from the affected countries, escalating trade tensions.
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- Target, Best Buy CEOs warn of price increases as tariffs take effect (foxbusiness.com)