Two major U.S. retailers, Target and Best Buy, have warned of price increases due to President Donald Trump’s tariffs on imports from Mexico, Canada, and China. The tariffs, which took effect Tuesday, include a 25% levy on goods from Mexico and Canada and a doubling of tariffs on Chinese imports to 20%. These measures aim to address fentanyl trafficking but are expected to raise prices on various goods imported from these nations, which account for over 40% of U.S. imports by value.
Target CEO Brian Cornell stated that the company may raise prices on Mexican produce imports as soon as this week, particularly affecting fruits and vegetables during winter. Tariff uncertainty is also projected to impact Target’s profits this quarter. Meanwhile, Best Buy CEO Corie Barry noted that tariffs on Chinese and Mexican electronics will likely lead suppliers to pass costs onto retailers, increasing consumer prices across the industry