Target CEO: Expect price increases in the next couple days because of tariffs

Two of America’s largest retailers, Target and Best Buy, warned Tuesday that prices will increase following President Donald Trump’s tariffs on imported goods from Mexico, Canada and China. Target’s CEO said the price increases could happen a lot sooner than you think.

Two of America’s largest retailers, Target and Best Buy, warned Tuesday that prices will increase following President Donald Trump’s tariffs on imported goods from Mexico, Canada and China. Target’s CEO said the price increases could happen a lot sooner than you think. Trump’s blanket 25% tariffs on Mexico and Canada took effect on Tuesday. Trump also doubled the tariff on all Chinese imports to 20% from 10%. Those import taxes sit atop existing tariffs on hundreds of billions in Chinese goods. China and Canada immediately retaliated with tariffs on American goods, and Mexico is planning to announce retaliatory measures. The Trump administration said the tariffs were necessary to stem the flow of fentanyl into the United States. But the tariffs threaten to raise the prices Americans pay for a wide array of goods that are imported from the three nations, which collectively import more than 40% of all US goods by value. Target CEO Brian Cornell said in an interview with CNBC Tuesday that Trump’s tariffs on Mexico may force the company to raise prices on fruits and vegetables as soon as this week. Cornell said Target relies heavily on Mexican produce imports during the winter. “Those are categories where we’ll try to protect pricing, but the consumer will likely see price increases over the next couple of days,” he said. Target also said that “tariff uncertainty” will impact its profit this quarter.