Target, retailers tiptoe around tariff price hike talk

Raising prices to cover the costs of President Donald Trump's tariffs will be Target's "very last resort," CEO Brian Cornell said.

Raising prices on consumers to cover the costs of President Donald Trump's tariffs will be Target's "very last resort," CEO Brian Cornell said Wednesday.

Target reported weaker-than-expected sales in its first quarter and cut its full-year forecast. The retailer, whose business hasn’t fared as well against rivals better known for bargain prices, has “many levers to use in mitigating the impact of tariffs,” Cornell said.

Major retailers appear to be treading cautiously around the question of price hikes after Trump slammed Walmart last weekend for warning that shoppers could pay more due to tariffs. Since then, Target, Lowe’s and Home Depot have made carefully worded remarks about the potential for higher prices or minimized discussion of tariffs altogether.

Walmart said last week that its customers would be likely to start seeing some prices climb as soon as this month because tariffs have created a more “challenging environment to operate in.” While presidents typically avoid appearing to dictate individual companies’ strategies, Trump castigated Walmart on his social media platform, demanding that it “EAT THE TARIFFS” and adding, “I’ll be watching, and so will your customers!!!”

Walmart told NBC News on Saturday in response to Trump’s post, “We’ll keep prices as low as we can for as long as we can given the reality of small retail margins.” Days later, Home Depot all but ruled out near-term price hikes, citing its scale and supply-chain arrangements. Lowe's barely mentioned tariffs when it reported earnings Wednesday but said just 20% of what its shoppers buy now comes from China, after years of its diversifying its sourcing.