Consumers should prepare for noticeable price increases at the checkout counter, affecting a wide range of goods from avocados to computers and even Tonka trucks. Business leaders have issued warnings that these hikes could begin as early as the end of this week, following the recent implementation of new tariffs.
Target CEO Brian Cornell was among the first to express concern after the Trump administration announced a 25% tariff on products from Canada and Mexico, while also doubling the duties on goods from China to 20%. Cornell emphasized that Target relies heavily on Mexican produce during the winter months, which may compel the company to increase prices on fruits and vegetables immediately. “Those are categories where we’ll try to protect pricing, but the consumer will likely see price increases over the next couple of days,” Cornell stated in a CNBC interview after Target's fourth-quarter earnings release. “If there’s a 25% tariff, those prices will go up.”
Electronics retailer Best Buy also indicated that consumers can expect price hikes. CEO Corie Barry mentioned that while the chain is unlikely to raise prices immediately, it is “highly likely” that vendors will pass along tariff costs to retailers in the coming months. Barry noted that approximately 55% of Best Buy’s merchandise is sourced from China in some capacity, with an additional 20% coming from Mexico.
In the Northeast, where gasoline, heating oil, and diesel are predominantly imported from Canada, experts predict gas prices could spike by up to 40 cents per gallon. Recent data from the Energy Information Administration revealed that retail gasoline prices in New England were around $3 last week. GasBuddy analyst Patrick De Haan warned, “If you’re filling up in the Northeast, you’ll see price increases first and more significantly.”
Families looking to purchase toys may also find themselves spending more. A staggering 80% of all toys are imported from China. Basic Fun, a toy manufacturer, announced that its new line of miniature Tonka trucks will rise from $5 to $6 due to the increased tariffs. CEO Jay Foreman explained, “When the tariff was 10%, we had a good understanding with our retail and manufacturing partners. Everyone was going to shoulder the burden. But the extra 10% is too much not to be passed on to consumers.”
Foreman was one of many toy makers present at the annual Toy Fair held at New York City’s Javits Center, which concluded on Tuesday. Notably, toy giants like Mattel, the maker of Barbie, and Hasbro are also contemplating price increases later in the year, as reported by research site GuruFocus. However, both companies have refrained from commenting on any immediate pricing adjustments.
As the implications of these tariffs unfold, consumers across the nation should remain vigilant about potential price changes across various sectors, from groceries to electronics and toys.
