US retailers Target and Best Buy have warned that prices will increase due to President Donald Trump’s tariffs on imported goods from Mexico, Canada, and China. The tariffs took effect on Tuesday, with the US doubling its tariff on Chinese imports to 20% from 10%. This move is expected to impact a wide range of goods, including electronics and fresh produce.
Target CEO Brian Cornell stated that the company may raise prices on fruits and vegetables as soon as this week due to the tariffs. The retailer relies heavily on Mexican produce imports during the winter months and will attempt to protect pricing in certain categories. However, Cornell warned that “tariff uncertainty” will negatively impact Target’s profit this quarter.
Best Buy CEO Corie Barry also expects tariffs to cause prices to rise, citing China and Mexico as top sources for consumer electronics at their stores. The company anticipates that its vendors will pass on tariff costs to retailers, leading to price increases for American consumers.
The tariffs are part of a broader trade dispute between the US and its trading partners. China has retaliated with tariffs on American goods, while Mexico is planning to announce retaliatory measures.
Target’s recent decision to backtrack on diversity, equity, and inclusion (DEI) efforts has also sparked backlash from progressive customers and boycott calls. The retailer has faced a decline in sales and customer visits, which have slowed down over the last four weeks. However, analysts suggest that this drop may be attributed to various factors beyond just Target’s DEI move.
The latest trade tariffs and consumer response highlight the complexities of modern retailing, where issues like global supply chains and social responsibility can quickly become major concerns for both consumers and businesses.
Source: https://edition.cnn.com/2025/03/04/business/target-earnings/index.html