Shoppers can expect to see higher prices at the checkout counter for products ranging from avocados to computers to tonka trucks.
Target CEO Brian Cornell was one of the first to raise the alarm after the Trump administration on Tuesday placed a 25% job on Canadian and Mexican products, doubling China's toll to 20%.
Cornell said Target has relied heavily on Mexican produce for the winter, and tariffs could force the company to quickly raise prices for fruit and vegetables.
“These are categories that try to protect pricing, but consumers will see prices rise in the coming days,” Cornell told CNBC in an interview after Target announced its fourth-quarter revenue.
“If there is a 25% tariff, those prices will rise.”
Electronics Giant Best Buy said it's “very likely” that the chain will raise prices, but for a few months it hasn't.
“Our assortment vendors expect to pass on some tariff costs to retailers, making prices very possible for American consumers to rise,” said Corie Barry, CEO of Best Buy, after reporting revenues Tuesday.
Approximately 55% of Best Buy's products are sourced “in some form, shape, or shape” from China, with an additional 20% coming from Mexico.
Gas prices in the northeastern region, which relies heavily on Canadian shipments of gasoline, heating oil and diesel, could soon rise up to 40 cents per gallon, experts said.
Energy Information Bureau data is a small New England retailer that retailed gasoline for around $3 last week.
“If the northeast fills up, you can see that prices will first rise significantly,” Gasbadianaist Patrick DeHaan said in a blog post Tuesday.
People who buy toys need to dig deeper to put a smile on their child's face, given that 80% of all toys come from China.
According to Basic Fun, the new line of miniature Tonka trucks, scheduled to debut in August, costs $6 instead of $5 for the POP, based on previous guidance on 10% tariffs on goods made in China.
Meanwhile, CEO Jay Foreman said the latest Stretch Armstrong Dolls, the Boca Raton-based company, will also increase to $5.
“When the tariffs were 10%, we had a good understanding with us. [retail and manufacturing] Partners,” Foreman told the Post. “Everyone was trying to put a burden on me. But the extra 10% is so much more than it can be passed on to consumers.”
Foreman was one of hundreds of missionaries at the annual toy fair held at Javits Center in New York City, which ended Tuesday.
Toy Giants Mattel, the maker of Barbie and Hasbro, is also valuing prices rising probably later that year.
The company refused to discuss the immediate price increase when contacted by the post office.
With post wire
