Best Buy became the latest U.S. retailer to sound the alarm on President Donald Trump’s tariffs.
Best Buy CEO Corie Barry warned that it is “highly likely” that prices for U.S. consumers will increase as a result of Trump’s tariffs on China and Mexico that went into effect on Tuesday, according to a CNBC report. CNBC reported that Barry explained during an earnings call that China and Mexico are the company’s top two supply-chain sources.
“Trade is critically important to our business and industry. The consumer electronic supply chain is highly global, technical and complex,” Barry said on Tuesday. “We expect our vendors across our entire assortment will pass along some level of tariff costs to retailers, making price increases for American consumers highly likely.”
Experts and economists have warned for months that tariffs will likely increase costs for Americans.
Best Buy is a major U.S. retailer of electronics, including televisions, cell phones, computers and must-have appliances like ovens, washing machines and refrigerators. Higher tariffs could result in higher costs for U.S. consumers looking to buy basic these basic electronics.
CNBC reported that Barry said Best Buy only imports 2% to 3% of its products and is currently evaluating its supply-chain strategy.
“The giant wild card here, obviously, is how the consumers are going to react to the price increases, in light of a lot of price increases potentially throughout the year and a general consumer confidence that is showing a little signs of weakness at the moment,” Best Buy CFO Matt Bilunas said during the call, according to CNBC.
Barry’s comments come just as the U.S. economy responds to the new tariffs on Tuesday and just after Target also warned that its profits may drop as a result of Trump’s policies.
Starting just past midnight, imports from Canada and Mexico are now to be taxed at 25%, with Canadian energy products subject to 10% import duties.
The 10% tariff that Trump placed on Chinese imports in February was doubled to 20%, and Beijing retaliated Tuesday with tariffs of up to 15% on a wide array of U.S. farm exports. It also expanded the number of U.S. companies subject to export controls and other restrictions by about two dozen.
Canadian Prime Minister Justin Trudeau said his country would slap tariffs on more than $100 billion of American goods over the course of 21 days. Mexico didn’t immediately detail any retaliatory measures.
Following Canada and China, Mexico President Claudia Sheinbaum said Tuesday that Mexico will respond to 25% tariffs imposed by the United States with its own retaliatory tariffs on U.S. goods.
The Associated Press contributed to this report.
Stories by Lauren Sforza
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