US retailers Target and Best Buy are warning consumers that tariffs imposed by the US government could raise prices in their stores as soon as this week. The CEOs of both companies, Brian Cornell and Corie Barry, have expressed concerns that higher tariffs on imports from Mexico and China will lead to increased costs for products such as electronics and produce.
Target relies heavily on Mexican produce during winter months, while Best Buy sources most of its products from these countries. Half of Target’s goods come from the US, but the company is bracing for potential price hikes in categories such as strawberries, bananas, and avocados due to increased costs.
Best Buy CEO Corie Barry has stated that tariffs will lead to higher prices for American consumers, with imports from China and Mexico facing up to 35% tariff increases. Commerce Secretary Howard Lutnick has hinted at the possibility of a compromise with Canada and Mexico, but it remains to be seen how this will affect the situation.
As the tariffs take effect, US retailers are preparing for potential price hikes that could impact consumers’ budgets. The situation highlights the ongoing tensions between the US government and its trade partners, particularly in the wake of increased tariffs on imports from key trading partners like China and Mexico.
Source: https://www.theverge.com/news/624254/best-buy-target-raise-prices-tariffs