The CEO of Target, Brian Cornell, stated on Wednesday that increasing prices for customers due to President Trump’s tariff policies would be a “last resort” for large retailers.
“It’s challenging given the rates we are dealing with and the uncertainty surrounding how these rates will change across different categories,” Cornell mentioned during a call with analysts. “Our focus remains on helping American families manage their budgets,” he added.
His comments highlight Target’s recent struggles, marked by declining store sales and reduced consumer confidence, which reflect the impacts of the ongoing trade conflict. In the first quarter of 2025, Target reported net sales of $23.8 billion, a decrease from $24.5 billion in 2024.
“While our sales fell short of expectations, we did see some positives this quarter, particularly strong digital growth, with a 36% rise in same-day delivery through Target Circle 360, along with collaborations featuring top designers in over a decade,” he mentioned in a statement on Wednesday.
Target seems to be taking a different stance on tariff effects compared to Walmart, which recently announced plans to raise prices as a result of the trade war. Walmart indicated that these price increases would begin this month and continue into early summer.
In response, Trump criticized Walmart, urging the retail company to absorb the extra costs instead. He remarked, “Walmart should stop using tariffs as an excuse to raise prices. The company made billions last year,” emphasizing that the chain shouldn’t impose charges on customers.
Following discussions held in Switzerland earlier this month, the US has lowered tariffs on Chinese imports from 145% to 30% for a 90-day period. China, in turn, has also decreased its tariff rates from 125% to 10%.
Two months ago, Best Buy alerted that tariffs were significantly affecting technology retailers and could lead to higher costs for consumers. “Best Buy imports only 2-3% of its overall products directly, but we anticipate that our vendors will pass on some tariff expenses to us,” the company stated during an earnings call in early March. “The quarterly guidance we provided doesn’t account for the impact of the newly imposed tariffs.”
