Target Could Raise Prices on These Items Next Week Because of Trump Tariffs

Now that President Donald Trump’s tariffs have gone into effect on Mexican and Canadian imports, shoppers are likely to feel the hit to their wallets, Target’s CEO Brian Cornell said Tuesday.

The imports are likely to impact certain kinds of products, and fruits and vegetables could be the first place consumers see higher prices.

Why It Matters

Previously, Trump announced tariffs of up to 25 percent on goods from Mexico and Canada and a 10 percent tariff on Chinese imports.

The tariffs are estimated to increase inflation by 1 percent, according to a Goldman Sachs report. U.S. companies could see their profits decline, and other countries could also potentially retaliate with their own tariff measures.

What To Know

The 25 percent tariff on goods from Mexico and Canada went into effect Tuesday. Alongside this measure, Trump has levied an additional 10 percent tariff on Chinese imports.

Since Target relies on Mexican produce during the winter, Target CEO Cornell said shoppers should expect higher prices on fruits and vegetables as early as this week.

“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 told CNBC. “If there’s a 25 percent tariff, those prices will go up.”

In terms of specific produce, expect strawberries, avocados and bananas to surge in price, he said.

Target is still working to reduce the impact of the new tariffs on prices, with the company lowering its reliance on Chinese imports from over 60 percent to just 30 percent.

Inflation has continued to improve over recent months, but many Americans are still facing high costs at the grocery store. In February, consumer confidence hit a record low since 2021.

What People Are Saying

President Donald Trump wrote previously on Truth Social: “For many years, the U.S. has been treated unfairly by other Countries, both friend and foe. This System will immediately bring Fairness and Prosperity back into the previously complex and unfair System of Trade. America has helped many Countries throughout the years, at great financial cost. It is now time that these Countries remember this, and treat us fairly – A LEVEL PLAYING FIELD FOR AMERICAN WORKERS.”

Economist Wayne Winegarden, who also serves as the director at the Center of Medical Economics and Innovation at the Pacific Research Institute, told Newsweek: “Fruits and vegetables can’t be stored long. Since we get over 60 percent of our fresh produce from Mexico, the tariffs will be applied to the goods we consume very quickly. Consumers should prepare; many items are going to get more expensive quickly. In an already weakening environment, the tariffs seriously raise the chances of a difficult recession. Very disappointing.”

Alex Beene, a financial literacy instructor for the University of Tennessee at Martin, told Newsweek: “Produce will be an area where American consumers could feel the sharpest and quickest increase, primarily because these items are more frequently shipped into the country for purchase and consumption.

“Cornell’s comments are in line with the expectations of many other companies that carry products affected. No business is going to eat the cost of these tariffs. They will be passed on to the consumer. Ultimately, it’s a lose-lose, as companies will more than likely see reduced sales due to higher prices, and customers will have to make the hard decision of continuing to purchase these items at elevated prices.”

What Happens Next

China has already retaliated against the first 10 percent tariff imposed by Trump’s administration. The country imposed a 15 percent border tax on coal and liquefied natural gas products and a 10 percent tariff on crude oil, agricultural machinery and large-engine vehicles.

If Canada and Mexico follow suit, economists predict that cars, beer, houses and fuel could all surge in price.

That’s because a lot of the imports required for these products are from Canada and Mexico, which previously had a better trade relationship with the U.S. before the tariffs.

The D.C.-based think tank Tax Foundation predicted that the imposed tariffs on China would reduce long-run GDP (gross domestic product) by 0.1 percent. Meanwhile, those tariffs levied on Canada and Mexico would lower it by 0.3 percent.