US retailers are bracing for higher produce prices in the coming days due to President Donald Trump’s tariffs on Mexican goods. In a CNBC interview, Target CEO Brian Cornell said that strawberries, avocados, and bananas may see price increases as the 25% duties on imports from Mexico and Canada took effect.
The company relies heavily on Mexican produce during the winter months, which means it will need to raise prices on fruits and vegetables soon. Cornell told CNBC that prices could rise for these items as early as this week. While Target is working to protect pricing in certain categories, consumer prices are likely to increase over the next couple of days.
Other retailers have also been impacted by Trump’s tariffs, including China, which will face a cumulative 20% duty on goods from the region. However, Target has been able to reduce its reliance on Chinese imports, with only 17% of its apparel currently manufactured in the country.
Target CEO Brian Cornell stated that his company is working closely with industry groups to ensure their voice is heard by the administration. He also downplayed concerns about China, saying that Target is reducing its reliance on the country and shifting production to emerging manufacturing markets in the Western Hemisphere.
The company’s comments come as it posted fiscal fourth-quarter earnings, which topped Wall Street expectations but cast a pall over the current quarter due to tariff concerns and sliding consumer confidence. Other retailers have also given weaker-than-expected guidance, warning of a weak economy ahead.
Source: https://www.cnbc.com/2025/03/04/trump-mexico-tariffs-will-raise-produce-prices-target-ceo-cornell-says.html