Hope you’ve got some wiggle room in your budget—because Walmart, Target and Best Buy all warned this week that new tariffs on products from Mexico, Canada and China are about to hit your wallet.
Target CEO Brian Cornell told CNBC that prices on goods like strawberries, avocados and bananas will rise “over the next couple of days” due to the 25% import tax imposed by the Trump administration.
Best Buy’s CEO echoed the concern, saying the company relies heavily on China and Mexico for its supply chain, and that means electronics prices are “highly likely” to jump.
Even Walmart, which has been a go-to for budget-conscious shoppers amid inflation, admitted that keeping prices low won’t last much longer.
“The reality is that tariffs act as a hidden tax on consumers,” said Jason Reed, an economist at the University of Notre Dame. “Companies may absorb some of the cost, but ultimately, it gets passed down to shoppers.”
Retailers are scrambling to adjust. Target may keep $5 t-shirts at that price but shift the cost burden onto other products. Meanwhile, a survey of supply chain execs found only 21% are investing in expanding domestic manufacturing in coming years—the exact thing Trump claims his tariffs are supposed to encourage. More businesses are planning to cut costs in other ways (read: lay off workers), raise prices or throw money at lobbying efforts instead.
With prices rising, now might be a good time to revisit your budget. Here’s how to make one—and actually stick to it. (Look at us cross-promoting content!)
