Target became the latest retailer to lower its financial forecast for the year on Wednesday. It downplays plans for tariff-related price increases. Ted Shaffrey/AP Closed subtitles
Major U.S. retailers are fighting two immediate battles: It’s hard for companies to talk about the impact of the expensive price of President Trump’s widespread tariffs without irritating the White House or alienating customers.
Target became the latest retailer to lower its financial forecast for the year on Wednesday. It downplays plans for tariff-related price increases.
On Tuesday, Home Depot said it does not intend to raise prices widely due to tariffs - although it acknowledges Some Prices may rise and some items may disappear entirely from store shelves.
So far, both have avoided the anger the president and his administration gave to Walmart, Mattel, and Amazon.
Although Trump said foreign countries should pay their tariffs, U.S. businesses were given tariff bills when they claimed to import goods at the border. According to current temporary transactions, the U.S. taxes on Chinese imports at 30%, rather than the top 145%. All global importers face a new 10% tariff.
Walmart, the world's largest retailer, warned last week that prices would have to be raised due to tariffs as early as this month. Trump wrote in a social media post that Walmart should “eat the tariffs.”
CEO Doug McMillon said Walmart and its suppliers have absorbed some tariffs. But Walmart can't do this with the full amount "below the magnitude of the tariffs," he said.
Amazon also faces criticism from the Trump administration after news reports say retailers may show the cost of new tariffs on its low-cost market called Amazon Haul. Before Trump spoke to founder Jeff Bezos over the phone, the White House called it "hostility and politics", and Amazon said showing tariffs was never a plan at the beginning.
Shortly thereafter, Trump threatened to impose a 100% tariff on Barbie maker Mattel, because the company would raise the price of certain toys due to the tariffs. "He won't sell a toy in the United States," Trump said.
After all of this, Target executives reiterated on Tuesday that the chain is working to offset the "big majority" of tariffs.
"We have a lot of leverage to mitigate the impact of tariffs, and Price is the last resort," Target CEO Brian Cornell told investors on Wednesday. Another leverage includes negotiating with suppliers, changing product choices, shifting the source of projects and reinstalling orders.
Home Depot executives asserted Tuesday that the chain is not considering higher price increases, but that if tariffs are too high, it could raise the price of individual items or change certain product options.