Target and Best Buy warn of price hikes from Trump's tariffs
Wall Street investors, retail executives and economic analysts are sounding growing alarms that the new administration’s trade policies could pinch shoppers and the economy.
Shoppers won’t have to wait long to see President Donald Trump’s trade war ripple across store shelves, retail executives say.
Target’s CEO said Tuesday that the company could hike prices on fruits and vegetables in coming days in response to tariffs, and Best Buy’s chief executive called price increases “highly likely.” Even Walmart, which has benefited from consumers’ ongoing hunt for savings, recently warned that it’s “not going to be completely immune” from federal import taxes on America’s biggest trade partners.
The warnings pose a challenge to a president who took office pledging to reduce prices “starting on Day One” but has faced stubborn inflation and ongoing shortages of grocery staples from eggs to coffee and chocolate.
Target and Best Buy both reported earnings shortly after Trump’s latest tariffs on China, Canada and Mexico took hold, triggering immediate retaliation from the first two countries, with a response from the third expected soon. Wall Street investors, retail industry leaders and economic forecasters are sounding growing alarm that the Republican administration’s trade policies could pinch households’ wallets and slow down the economy — two-thirds of which is fueled by consumer spending.
“Now that these tariffs are coming into play, the cost of many of these products are going to go up quite substantially,” said Neil Saunders, managing director at GlobalData, a retail consultancy. “There’s no way that retailers can afford to absorb all of this cost increase themselves and keep prices the same for the customer.”
Rating: 5