Major retailers warn that Trump's tariffs will soon make goods more expensive in the US
On March 3, 2025, US President Donald Trump announced that he would impose a 25% tariff on products imported into the US from Canada and Mexico, and a new 10% tariff on imports from China. In response to this, major retailers
Best Buy and Target CEOs say prices are about to go up because of tariffs | The Verge
https://www.theverge.com/news/624254/best-buy-target-raise-prices-tariffs
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On March 3, 2025, President Trump announced that he would impose a 25% tariff on products produced in Canada and Mexico imported into the United States under the International Emergency Economic Powers Act (IEEPA). The tariffs were implemented the following day, March 4. Similarly, a presidential order was also announced to increase tariffs on China by an additional 10% to 20% from March 4, 2025.
In addition to clothing and household goods, Target also sells fruits and vegetables. Many of the fruits and vegetables sold at Target are imported from Mexico, and in response to the tariffs, Target CEO Brian Cornell said , 'We are working to maintain prices as much as possible in these categories, but we will likely increase prices in the coming days.'
In addition, Best Buy, a consumer electronics retailer, reported in a previous earnings briefing that 'China and Mexico are the top sources of supply in Best Buy's supply chain, with approximately 55% and 20% of the products sold at Best Buy coming from China and Mexico.' Therefore, the imposition of the tariffs will be a major blow to Best Buy, and 'We expect our product vendors to pass on the tariff costs to us as retailers. As a result, it is very likely that prices will increase in the United States,' said Best Buy CEO Corey Barry.
In response to President Trump's tariffs, the governments of Canada, Mexico, and China have
The implementation of the tariff measures has had many adverse effects on the US stock market and economy. On March 4, 2025, the New York Stock Exchange saw a widespread sell order in response to the implementation of the tariff measures, causing the Dow Jones Industrial Average to temporarily fall by more than $800 (approximately 120,000 yen), closing at $42,520.99 (approximately 6.37 million yen), down $670.25 (approximately 100,500 yen) from the previous day. Overseas media Axios points out that 'the current US stock market is lower than when Trump won the presidential election in November 2024 or when he took office on January 20, 2025.'
In addition, Elon Musk's Department of Government Efficiency (DOGE) has set the goal of 'eliminating waste in the U.S. government' and is reviewing various projects and laying off employees in order to reduce government spending. In response to these efforts, fears of layoffs are spreading among U.S. government employees, and concerns about the U.S. economic growth are growing due to rising unemployment and tightening spending.
The series of slowing economic growth has raised concerns that the Federal Reserve (Fed) may temporarily postpone the resumption of interest rate cuts. Jan Nevrugj, interest rate strategist at Canadian financial services provider TD Securities, pointed out that 'the US market has shifted from excessive enthusiasm about economic growth due to President Trump's inauguration to a sense of crisis that economic activity may slow again.'
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