Hours after President Donald Trump’s much-anticipated tariffs on Canada and Mexico and his increase in tariffs on China took effect on Tuesday, CEOs of two major retailers in the US said consumers will most likely end up paying more as a consequence of the tariffs, as reported.
Hours after President Donald Trump’s long-pending tariffs on Canada and Mexico and his increase of levies on China went into effect on Tuesday, CEOs of two of the largest retailers in the US indicated that customers are likely to notice higher prices due to the tariffs.
The Guardian, quoting a CNBC report, says that advice from the CEOs of Target and Best Buy defies Trump’s assertion that US consumers will not bear the cost of his trade war, which enraged his predecessor Joe Biden after the US economy was struck by its worst case of inflation in decades.
Those are categories where we’ll try to protect pricing, but the consumer will likely see price increases over the next couple of days,” Target CEO Brian Cornell told CNBC in an interview.
“If there’s a 25% tariff, those prices will go up,” he added. On an earnings call, Best Buy CEO Corie Barry said China and Mexico were his firm’s two biggest suppliers, and price hikes were inevitable. Beginning shortly after midnight, imports from Canada and Mexico are also now facing a 25% tariff, while Canadian energy goods are hit with a 10% duty.
Trump’s February-imposed 10% tariff on Chinese imports has been upped to 20%, triggering Beijing to hit different US farm exports with up to 15% tariffs and widen export controls on US firms. Canadian Prime Minister Justin Trudeau imposed tariffs on more than $100 billion worth of American products in 21 days.
Mexico too declared counter-tariffs, with President Claudia Sheinbaum stating that she would present the US goods Mexico will subject to tariffs on Sunday at an open ceremony in Mexico City’s central square. In contrast to Canada and China, Mexico chose to wait until Sunday, even though the nation stated back in January that it had a prepared plan for exactly this situation.
The moves have set alarm bells ringing over increased inflation and an imminent trade war, even as Trump insists that tariffs are a clear route to national prosperity. Trump has pushed aside warnings from economists, saying tariffs can fix the country’s economic problems.
