Summarize this content to 2000 words in 6 paragraphs Major U.S. retailers including Target and Best Buy are warning consumers of imminent price increases across a range of products. This comes in response to the new tariffs imposed by President Donald Trump on goods from China, Canada and Mexico.These measures, aimed at protecting U.S. industries, are likely to impact consumers nationwide—potentially seeing a rise in prices for everything from electronics to everyday groceries.Newsweek reached out to Target and Best Buy for comment via email on Tuesday.Why It MattersThe imposition of tariffs comes as a controversial step that could potentially slow consumer spending and increase inflation, adding pressure to an already delicate economic recovery.Retail giants are indicating that these costs may inevitably be passed down to consumers, with price hikes expected in essential and discretionary goods alike.
Logo is visible on facade at Target retail store under dramatic sky in San Ramon, California, May 30, 2020.
Logo is visible on facade at Target retail store under dramatic sky in San Ramon, California, May 30, 2020.
Smith Collection/Gado/Getty Images
What To KnowTwenty-five percent tariffs on imports from Canada and Mexico and an upped 20 percent tariff on imports from China went into effect around midnight on Tuesday.The retail landscape is bracing for the effects of these changes, which could reshape shopping behavior and possibly consumer loyalty as prices climb.TargetTarget CEO Brian Cornell acknowledged the potential impact on produce, stating in a CNBC interview on Tuesday, “We know for certain categories, like fruits and vegetables, where during this winter season, we depend on Mexico for a significant amount of supply. Those are categories where we’ll try to protect pricing.” Cornell added consumers “will likely see price increases over the next couple of days.”Best BuySimilarly, Best Buy, heavily reliant on electronic imports, anticipates price adjustments. As reported by CNBC, CEO Corie Barry commented on an earnings call that “the consumer electronic supply chain is highly global, technical and complex,” and that price increases due to the new tariffs are “highly likely” for consumers in the U.S.Best Buy CFO Matt Bilunas also spoke during the earnings call about the uncertainty around consumer reactions to the price increases, according to CNBC.WalmartIn November, Walmart also signaled a potential for price increases. CFO John David Rainey told CNBC, “We never want to raise prices… Our model is everyday low prices. But there probably will be cases where prices will go up.”In February, Rainey spoke to the outlet again, stating Walmart is adept at navigating tariffs by collaborating with suppliers, optimizing their private brand and adjusting supply chains to help keep costs low for consumers.What People Are SayingTarget CEO Brian Cornell told CNBC on Tuesday: “Those are really short supply chains… we depend on Mexico during the winter. We’re going to try and make sure we can do everything we can to protect pricing, but if there’s a 25 percent tariff, those prices will go up.”Best Buy CEO Corie Barry said on an earnings call, as reported by CNBC: “We expect our vendors across our entire assortment will pass along some level of tariff costs to retailers, making price increases for American consumers highly likely.”Tahra Jirari, director of economic analysis at the Chamber of Progress, an American trade group, previously told Newsweek: “These new tariffs will likely increase costs for American consumers and businesses by making imported goods more expensive.History shows that tariffs often lead to higher production costs, slower economic growth, and reduced global competitiveness for U.S. exporters. The White House claims tariff revenue will help offset deficits, but in reality, it’s a tax that American businesses and consumers will ultimately pay.”What Happens NextAs retailers adjust their pricing strategies, the focus will be on the upcoming economic data to gauge the impact of these tariffs on overall consumer spending and inflation.
