Trump tariffs will mean higher prices for U.S. consumers, major retailers say

Businesses large and small are bracing for the impact of the Trump administration’s new tariffs on U.S. imports from Mexico, Canada and China — and preparing to pass on the pain to consumers. 

Best Buy CEO Corie Barry said this week that the electronics retailer is particularly exposed to the tariffs, noting that China and Mexico are the two largest suppliers of the company’s products.

“[W]e 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 in a March 4 call with Wall Street analysts to discuss the company’s latest financial results. 

The new 25% tariffs on Mexico and Canada, plus a move to tack an additional 10% levy on to an existing 10% tariff on Chinese imports, took effect Tuesday. Those costs are borne largely by U.S. importers, usually leading to price hikes for shoppers.

While Barry said the tariffs will lead to price increases, she didn’t specify how big they would be.

“I think it is fair to say… that tariffs at this level will result in price increases. I think it is very difficult to say given the backdrop that we’re in, exactly precisely how big that is,” Barry added later in the call in response to a question from an analyst. 

A Walmart executive told NBC News in February that it would not be “immune” to the impact of such levies.

And Target CEO Brian Cornell this week told CNBC that because the discount retailer relies heavily on produce from Mexico, consumers can expect to see higher prices on fruits and vegetables almost immediately. 

“If there’s a 25% tariff, those prices will go up,” Cornell said.

The U.S. Chamber of Commerce this week urged the Trump administration to reconsider the sweeping new tariffs, saying they force businesses to choose between hiking prices or risk going out of business.

“American families and businesses are struggling with high costs. It’s one of the top issues that they want policymakers to address,” Neil Bradley, chief policy officer at the U.S. Chamber of Commerce, said in a statement. 

“We also want to work together to keep costs down, but tariffs will only raise prices and increase the economic pain being felt by everyday Americans across the country. We urge reconsideration of this policy and a swift end to these tariffs,” he added.

Franco Salerno, who owns Darianna Bridal and Tuxedo in Warrington, Pennsylvania, told the Chamber of Commerce the company is printing new price tags to reflect the increased costs dress designers expect to incur and pass along to Darianna’s, due to the tariffs. 

“Dress designers are already notifying us that they are raising prices to cover any tariffs,” Salerno told the trade group. 

The Retail Industry Leaders Association (RILA), a trade organization representing retailers, also called on President Trump to reconsider his tariff policy. 

“The American people are counting on President Trump to bring down costs and grow the U.S. economy,” Michael Hanson, RILA’s senior executive vice president of public affairs, said in a statement. “Tariffs on Canada and Mexico put those goals in serious jeopardy and risk destabilizing the North American economy. Stacking tariffs on household goods will also raise costs on American families, millions of whom have struggled through the worst bout of inflation in forty years.”

Other businesses are also scrambling to budget for the impact of tariffs. David Spatafore, who owns several restaurants in San Diego, said soaring egg and dairy prices of late has taken a toll. Tuesday’s tariffs are adding to the pain. 

“Everything across the board is impacted,” Spatafore said.

One of his restaurants has also been remodeling, with the project getting increasingly expensive as tariffs hit Canadian lumber and steel.

“We were in the middle of a quote for a custom oven being made,” he said, when the contractor added the cost of the tariffs to his estimate. 

“Where are you supposed to absorb it?” he said. 

contributed to this report.