Consumers are set to encounter higher prices at checkout counters for a variety of goods, including avocados, electronics, gasoline, and toys. These increases are due to new tariffs announced by the Trump administration, which impose a 25% duty on products from Canada and Mexico and raise tariffs on Chinese goods to 20%. Target CEO Brian Cornell warned that prices on fruits and vegetables could rise immediately, as the company relies heavily on Mexican produce during winter months. “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 stated in an interview with CNBC. “If there’s a 25% tariff, those prices will go up.”
Best Buy also indicated that price hikes are “highly likely,” though they may not occur for a few months. “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,” said Best Buy CEO Corie Barry. Around 55% of Best Buy’s merchandise is sourced from China, with another 20% coming from Mexico.
Gas prices in the Northeast, which depend significantly on Canadian fuel shipments, could rise by up to 40 cents per gallon, according to experts. New England retail gasoline prices were approximately $3 per gallon last week, based on data from the Energy Information Administration. “If you’re filling up in the Northeast, you’ll see price increases first and more significantly,” noted GasBuddy analyst Patrick De Haan.
Toy prices are also expected to increase, as 80% of all toys sold in the U.S. are manufactured in China. Basic Fun, a toy company, announced that its new line of miniature Tonka trucks, set to launch in August, will now cost $6 instead of $5 due to the tariff increase. Similarly, the company’s Stretch Armstrong dolls will see a price hike of up to $5, bringing the cost to $20. “When the tariff was 10%, we had a good understanding with our [retail and manufacturing] partners,” said CEO Jay Foreman. “Everyone was going to shoulder the burden. But the extra 10% is too much not to be passed on to consumers.”
Toy giants Mattel and Hasbro are also considering price increases later in the year, according to GuruFocus. Both companies declined to comment on immediate price changes when contacted.
— news from New York Post