The tariffs imposed by President Donald Trump on Tuesday are likely to have a direct impact on the wallets of Americans, a major CEO said.
In an appearance on CNBC on Tuesday, Target CEO Brian Cornell said the company will probably raise prices on produce and fruits as early as this week.
The reason, he said, was that Target’s produce like strawberries, avocados and bananas are commonly imported from Mexico. As part of Trump’s plan, Mexican and Canadian imports will be hit with a 25% tariff.
“If there’s a 25% tariff, those prices will go up,” Cornell said.
Cornell added that the company will attempt to protect prices to an extent, but the price increase is still likely to come in the next couple of days.
He downplayed the additional tariffs placed on China on Tuesday, which raised the rate to 20%, saying that Target has reduced its reliance on Chinese goods in recent years.
In the days after Trump took office on Jan. 20, Target announced it was scaling back its diversity, equity and inclusion (DEI) policies. DEI has been the subject of great scrutiny in the second Trump administration.
