Former Target Executive Gerald Stouch stated in an interview on Tuesday that the effects of President Trump’s tariffs have been “greatly overstated.”
“I believe all this about tariffs is greatly overstated by at least double the coefficient,” Storch mentioned on “Varney & Co.” on Fox Business Network.
“Taxes are related to the cost of goods, not the retail prices,” Stouch explained.
“Thus, we apply tariffs to 20% of the goods. That does not imply that retail prices will increase by 20%,” he added.
The concern regarding tariffs has escalated economic worries during the initial months of the Trump administration. Retailers like Target and Best Buy have indicated that consumers are paying more for specific products due to the implementation of tariffs and retaliatory measures taken by other nations.
On April 2, President Trump also promised to implement reciprocal tariffs aimed at countries with higher US import taxes compared to those imposed on exports. Trump indicated on Monday that certain items, such as automobiles, timber, and semiconductors, could be targeted as early as this week.
Nevertheless, the president also mentioned that “many countries may offer concessions” regarding mutual tariffs.
“It’s reciprocal, but we may even have a better situation. You know, we’ve been very accommodating to many nations for quite some time,” Trump remarked at the White House on Monday.
Storch expressed on Tuesday that he believes “people are overreacting” concerning the consequences of tariffs.
“It’s not nearly the magnitude that they are suggesting,” he added. “And retailers will thrive regardless of what transpires, as any increased costs will also occur simultaneously.”
“And when prices rise, their costs for labor and rentals or other expenses remain stable.”
