Best Buy and Target CEOs Warn: Prices Set to Surge Due to Tariffs!

"CEOs of Best Buy and Target: Prices to Rise from Tariffs!"

Target and Best Buy warn that Trump's tariffs on Mexico, Canada, and China could soon lead to price increases for consumers.

Rachel Patel5 March 2025Last Update : 19 hours ago

Best Buy and Target CEOs say prices are about to go up because of tariffs

www.theverge.com

On March 5, 2025, Target and Best Buy announced that President Trump’s tariffs on imports from Mexico, Canada, and China could lead to price increases in their stores within days. Target CEO Brian Cornell and Best Buy CEO Corie Barry both indicated that consumers should expect higher prices as a result of these tariffs.

6 Key Takeaways

Trump’s tariffs could raise store prices.
Target CEO warns of imminent price increases.
Best Buy anticipates higher costs for consumers.
Target relies on Mexico for winter produce.
Best Buy sources products from China and Mexico.
Vendors likely to pass on tariff costs.

Fast Answer: Target and Best Buy leaders warn that tariffs from Mexico, Canada, and China could raise prices for consumers imminently. Target’s CEO noted that fresh produce prices might rise, while Best Buy anticipates vendors will pass on tariff costs.

Target and Best Buy are responding to recent tariffs imposed by the Trump administration, which are expected to impact pricing strategies for both retailers. Cornell mentioned that approximately half of Target’s merchandise is sourced from the U.S., but the company relies heavily on imports from Mexico for seasonal fruits and vegetables. This dependency could lead to increased costs for items like strawberries, bananas, and avocados.

Best Buy’s Corie Barry echoed these concerns during an earnings call, stating that the company sources a significant portion of its products from China and Mexico. She highlighted that vendors are likely to transfer some of the tariff costs to retailers, which will ultimately affect consumer prices. Barry emphasized that price hikes are “highly likely” across their product range.

Key details regarding the potential price increases include:

Target’s reliance on Mexico for winter produce.
Best Buy’s significant imports from China and Mexico.
Expected price increases within a few days.

As these tariffs take effect, both retailers are preparing to adjust their pricing structures. Consumers may soon notice the impact on their shopping bills as the costs associated with tariffs are passed down through the supply chain.

Notice: Canadian consumers should be aware that similar tariffs may affect prices on imported goods in Canada, as many products sourced from the U.S. are also subject to these trade policies.

The announcements from Target and Best Buy highlight the immediate implications of tariffs on consumer prices. As both companies prepare for price adjustments, shoppers should stay informed about potential increases in their favorite products.