Buyers will doubtless see produce costs enhance within the coming days as a result of President Donald Trump’s tariffs on Mexican imports, Target CEO Brian Cornell mentioned Tuesday.
The Trump administration’s 25% levies on items from Mexico and Canada, together with a further 10% responsibility on Chinese language imports, took impact on Tuesday.
Cornell mentioned Goal depends closely on Mexican produce through the winter months, and the tariffs may pressure the corporate to boost costs on vegatables and fruits as quickly as this week.
“These are classes the place we’ll attempt to defend pricing, however the shopper will doubtless see worth will increase over the subsequent couple of days,” he advised CNBC in an interview after Target released its fourth-quarter earnings.
“If there is a 25% tariff, these costs will go up,” Cornell added.
Cornell mentioned costs may rise for produce like strawberries, avocados and bananas.
Goal Corp. CEO, Brian Cornell speaks throughout an interview on the ground of the New York Inventory Trade November 28, 2014.
Brendan Mcdermid | Reuters
Whereas inflation has eased in current months, worth will increase haven’t moderated as a lot because the Federal Reserve has hoped. Excessive costs for meals and housing have continued to stretch shopper budgets, and Trump’s tariffs have raised fears that households will see prices rise much more. The president and his advisors have contended the duties won’t elevate costs for shoppers.
The considerations about tariffs come after consumer confidence dropped in February to its lowest stage since 2021.
Cornell mentioned “there’s some concern about tariffs” that provides to the stress already dealing with shoppers.
The Goal CEO downplayed considerations about how the cumulative 20% duties on items from China will have an effect on consumers on the firm’s shops. Cornell mentioned Goal has lowered its imports from China to about 30% from greater than 60%.
