Target CEO Brian Cornell said Tuesday that the company will likely raise prices as early as this week in response to tariffs imposed by the United States on Mexico, Canada, and China.
“The consumer will likely see price increases over the next couple of days,” Cornell told CNBC. “Those are really short supply chains. You think about all the fresh produce. We depend on Mexico during the winter. We’re going to try to make sure we can do everything we can to protect pricing. But if there’s a 25 percent tariff, those prices will go up.”
His comments follow the implementation of President Donald Trump’s 25 percent tariffs on Mexico and Canada on Tuesday, along with a 10 percent tariff on China that was imposed a month ago and has officially gone into effect. Canada and China have both responded with retaliatory tariffs, while Mexico has suggested it may do the same, according to a report by the Wall Street Journal.
Cornell noted that consumer confidence has declined in recent weeks, partially due to concerns over tariffs.
“It’s just the state of the consumer,” he explained. “And I think we’ve seen a cautious consumer for quite some time now. They’re shopping carefully. They’re making sure they’re stretching their budgets as carefully as they can.”
Target is working to mitigate cost increases, Cornell said. However, he acknowledged that certain products, particularly fresh produce such as strawberries, avocados, bananas, and more are likely to see price hikes due to the implemented tariffs.
