Target CEO: ‘Trump’s Tariffs Could Raise Prices in Next Few Days’/ Newslooks/ WASHINGTON/ J. Mansour/ Morning Edition/ Target CEO Brian Cornell warned that President Donald Trump’s 25% tariffs on Mexican imports will soon raise prices on produce like strawberries, avocados, and bananas. The price hikes could hit consumers within days as Target and other retailers adjust to higher import costs. While the administration downplays inflation concerns, economic uncertainty continues to pressure consumer confidence.
Tariffs’ Impact on Food Prices: Quick Look
- Produce Price Spike: Tariffs will likely raise costs for fruits and vegetables.
- Target CEO Speaks Out: Brian Cornell confirms price hikes coming soon.
- Key Affected Items: Strawberries, avocados, bananas, and other Mexican imports.
- Tariff Details: 25% duties on Mexico and Canada; 10% on Chinese goods.
- Consumer Confidence Drops: February saw lowest levels since 2021.
- Retailers Feeling the Pressure: Target, Walmart, and Home Depot warn of weaker profits.
- Trump’s Stance: Administration claims tariffs won’t raise consumer prices.
Target CEO: ‘Trump’s Tariffs Could Raise Prices in Next Few Days’
Consumers Brace for Higher Grocery Bills
Shoppers should prepare for higher produce prices in the coming days as President Donald Trump’s new tariffs on Mexican imports take effect, Target CEO Brian Cornell warned Tuesday.
The 25% tariffs, which also apply to Canadian imports, began Tuesday alongside an additional 10% duty on Chinese goods. With Target heavily reliant on Mexican produce during the winter, Cornell said the retailer may have no choice but to raise prices soon.
“These are categories where we’ll try to protect pricing, but the consumer will likely see price increases over the next couple of days,” Cornell told CNBC after Target reported its fiscal fourth-quarter earnings.
Which Items Will See the Biggest Price Increases?
Cornell highlighted several fruits and vegetables that could become more expensive, including:
- Strawberries
- Avocados
- Bananas
Since the U.S. imports a significant portion of its produce from Mexico, these price hikes could extend beyond Target to other major grocery chains.
Tariffs and Inflation: A Growing Concern
While inflation has moderated in recent months, food and housing costs remain a major strain on consumers. Many economists fear that Trump’s tariffs could reverse recent progress, pushing prices even higher.
Despite concerns from retailers and financial experts, the Trump administration insists that the tariffs will not significantly affect consumer prices. However, history suggests otherwise—past trade wars have resulted in higher costs for imported goods, often passed down to shoppers.
Consumer Confidence Hits a Low Point
The new tariffs come at a time when consumer confidence is already falling. February’s confidence index dropped to its lowest level since 2021, as Americans grow wary of rising costs and economic uncertainty.
Cornell acknowledged that concerns over tariffs are adding pressure on consumers, making them more cautious about spending.
How Will Target and Other Retailers Adapt?
Cornell downplayed concerns about the tariffs on Chinese goods, stating that Target has reduced its reliance on China, now sourcing only 30% of its imports from the country. However, the new tariffs on Mexico present a bigger challenge, especially for fresh food items.
Target isn’t alone in bracing for economic headwinds. Other major retailers, including Walmart, E.l.f. Beauty, and Home Depot, have issued weaker-than-expected first-quarter forecasts, citing ongoing consumer uncertainty and inflation concerns.
What’s Next?
With higher grocery bills looming, American consumers will soon feel the effects of Trump’s trade policies at checkout lines. Whether these tariffs lead to prolonged inflation or force retailers to find alternative supply chains remains to be seen.
For now, shoppers should expect to pay more for fresh produce—starting within days.
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