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- Target CEO Brian Cornell stated on Tuesday that tariffs on commodities brought in from Canada and Mexico might cause Target’s cost of produce to go up within a week.
- Cornell implied that Target will attempt to protect shoppers from price hikes, however not all increases can be circumvented.
- Best Buy has also mentioned that tariffs will push up prices on numerous electronics in its stores.
Costs on some items at Target may soon go up following the enforcement of tariffs on goods imported from Mexico, the retail firm’s leader stated Tuesday.
Target (TGT) will attempt to protect consumers from as many price increases as possible, but it will be unavoidable to charge more for fresh produce and some other categories, Brian Cornell said on CNBC Tuesday morning. This comes hours after President Trump’s administration started imposing 25% tariffs on goods from Mexico and Canada, and increasing tariffs on goods from China to 20%.
Cornell noted that Target, like many U.S. food retailers, depends on Mexico for fresh produce during the winter. The supply chain for fresh fruits and vegetables is “very short,” meaning prices could increase within days. Bananas, strawberries, and avocados are among the products that could see price increases.
“We’re going to work hard to make sure we do everything we can to protect pricing,” he said on CNBC. “But if tariffs are 25%, those prices will increase.”
Target has already decreased the amount of imports it makes from China. A few years ago, more than 60% of imports came from China. That has now been reduced to 30% and is expected to reach 25%, he said.
Other companies, including Steve Madden (SHOO) and Newell Brands (NWL), which sells Yankee Candles and Graco baby products, have also diversified their supply chains to avoid paying higher tariffs.
The renowned electronics vendor, Best Buy, procures a minuscule fraction of its goods straight from international territories, with imports constituting below 3% of their complete stock.
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