Retail companies Target and Best Buy are warning their customers about potential price increases due to tariffs imposed by U.S. President Donald Trump on Mexico, Canada, and China. Target informed that shoppers will see price increases in the coming days, as China and Mexico are important suppliers for the company.
Target's CEO, Brian Cornell, mentioned that prices are likely to rise in their stores as a direct result of the tariffs. The company plans to protect prices on products such as fruits and vegetables, a significant portion of which is imported from Mexico during the winter.
Corie Barry, CEO of Best Buy, also alerted about possible increases in the prices of appliances and electronics due to the tariffs. Both companies join Walmart and Home Depot Inc. in taking a cautious stance amid economic uncertainty.
The Retail Industry Leaders Association expressed its concern about the tariffs, highlighting that these measures could destabilize the economy and affect businesses such as Home Depot, Best Buy, and Target. The tariffs could jeopardize price protection goals and generate negative impacts on the economy.
Despite the healthy results reported by both companies in the fourth quarter, product prices are expected to rise as a consequence of the tariffs. Target's stock fell 4.8 percent on Wall Street following the announcement, while Best Buy also projects price increases for its products.
