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The heads of the retail giants sent out warnings about likely price hikes for everything from fresh produce to expensive electronics. On Tuesday, Mar. 4, President Donald Trump officially enacted 25 percent tariffs on goods from Mexico and Canada, along with raising tariffs on Chinese imports to 20 percent.
Best Buy CEO Corie Barry said the chain heavily relies on China and Mexico as its top two international suppliers.
"While Best Buy only directly imports two to three percent of our overall assortment, 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," Barry said on a March 4 earnings call.
Best Buy, which reported $41.5 billion in fiscal year 2025 revenue, has yet to factor the tariffs into the upcoming year's outlook, citing uncertainty about their duration and scope.
"International trade is critically important to our business and industry," said Barry. "The consumer electronic supply chain is highly global, technical, and complex."
Target CEO Brian Cornell said its shoppers will likely see higher costs almost immediately after the tariffs begin. He spoke with CNBC shortly after Target's earnings call on March 4.
Cornell said Target heavily relies on Mexican-grown produce during colder months, forcing prices to rise on produce like avocados, bananas, and strawberries.
"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.
Cornell downplayed concerns about how the Chinese tariffs will affect Target shoppers, saying the retailer has reduced its dependence on China from 60 percent to about 30 percent of its imports. Still, he acknowledged that tariff pressures are mounting for customers already feeling the strain of inflation.
The trade wars have intensified concerns for Americans already struggling with rising costs. Canada, Mexico, and China are each planning counter-tariffs in response to the US's actions.
Canadian President Justin Trudeau announced $155 billion in tariffs on US goods, with $30 billion taking effect immediately. Mexican President Claudia Sheinbaum said she'll unveil countermeasures on Sunday, Mar. 9, while China has already raised tariffs up to 15 percent on US agricultural imports like chicken, pork, soy, and beef.
Economic fears have loomed throughout Trump's first two months back in office.
Consumer confidence took its steepest dive since August 2021, according to The Conference Board, as fears of job losses, higher prices, and supply chain disruptions grow. On the morning the tariffs took effect, the Dow Jones Industrial Average plunged more than 800 points, one day after the index's worst daily drop since December 2024.
Auto prices are also expected to rise as tariffs drive up costs for imported parts. Farmers face new export tariffs from China, threatening demand for US soybeans, pork, and dairy products.
Even everyday essentials are becoming more expensive. Among other grocery staples, egg prices jumped 15 percent in January, while housing costs were up 4.4 percent over the past year.
Best Buy and Target were also among a long list of retailers that were boycotted in a "24-hour blackout" on Friday, Feb. 28, as many Americans protested corporate greed and Trump's economic policies.
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