Tariffs Mean Some Target Prices Could Rise, CEO Says. Here’s What Companies Are Saying | Global News Avenue

The retailer’s CEO said Tuesday that some target prices may rise soon after tariffs on Mexican imports.

Target(TGT) Brian Cornell said on CNBC Tuesday morning that it will try to keep consumers from as much price increase as possible, but the expenses of fresh produce and some other categories will require more. After a few hours of comment President Donald Trump’s administration starts imposing 25% tariffs About Mexican and Canadian goods and raise tariffs on Chinese goods to 20%.

Target, With many American grocersCornell said winter relies on fresh produce from Mexico. The supply chain for fresh fruits and vegetables is “really short”, he said, meaning prices could rise in a few days. Bananas, strawberries and avocados are items that can be seen at higher prices.

“We will try to make sure we can do everything we can to protect pricing,” he said on CNBC. “But if there is a 25% tariff, those prices will rise.”

The goal reduces the extent to which it imports from China. A few years ago, more than 60% of imports came from the country. That has dropped to 30%, and is expected to reach 25%, he said.

Many other companies Diversified supply chains to avoid paying more tariffs, Including Steve Madden (shoo) and Newell Brands (Invalid), which sells Yankee candles and Graco baby gear. Mattel (pad) CEO Ynon Kreiz said on CNBC on Tuesday that the toy company is on a journey of supply chain diversity for years, so it can deal with tariffs and other changing market conditions.

Some companies say they raised the price at least on the initial price: Chipotle (Chitle) (CMG) CEO Scott Boatwright Say on weekends The burrito giant will absorb higher import costs.

Best Buy (BBYCorie Barry said Tuesday morning that 3% of imported goods does not exceed 3% of their goods, but many suppliers from tech industry sources from China and Mexico said Tuesday morning. She said on the income call that they would transfer at least a certain fee of tariffs to Best Buy, thus raising prices for consumers.

Barry said comparable sales over the year could cost 10% of goods to be subject to a 10% commodity tariff, assuming people buy less goods because they cost more.

Barry said the impact could be even more important if the ongoing tariffs on Tuesday continued, but it would be difficult to measure consumer reactions.

“We have never seen such tariffs,” according to a transcript provided by Alphaense. “It’s hard for us to fully understand resilience because there is no predictiveness in your history.”

This article has been updated since its first release to add new information.