Target CEO: Tariffs will cause food prices to rise in "next couple of days" - Axios

In a recent announcement that is raising concern among consumers and industry insiders, Target CEO Brian Cornell has warned of an imminent rise in food prices. This increase, according to Cornell, is a direct result of new tariffs, particularly affecting produce imported from Mexico. The change is expected to be felt within the next few days, a timeline that underscores the immediacy of the issue and its potential impact on households across the nation.

As the head of one of the country's largest retailers, Cornell's statement carries significant weight. His warning offers a clear example of how international trade policies can have a direct and immediate effect on everyday living costs for American consumers. The anticipated rise in food prices is not only an economic concern but also raises questions about food security and accessibility in the face of these shifting market dynamics.

This development is not isolated, but rather part of a broader context of economic and political decisions impacting trade relations. The enforcement of tariffs and their subsequent influence on commodity prices illustrates the interconnected nature of global economies. The repercussions will not only be felt by corporations like Target, but will also reverberate through to consumers, potentially reshaping the cost of living and consumption patterns in the United States.

New tariffs introduced by the government are anticipated to drive up prices, particularly for produce imported from Mexico. This warning comes from Brian Cornell, the CEO of Target, who voiced his concerns on Tuesday. The new tariffs are part of a broader economic strategy that aims to protect domestic industries and reduce the trade deficit. However, they are also expected to have a significant impact on the cost of goods for consumers. The immediate effects will likely be felt in the produce section, where a large percentage of items are imported from Mexico.

Target is one of the largest retailers in the United States, with a wide range of products, including food items. The company sources a significant portion of its produce from Mexico, which is currently on the receiving end of these new tariffs. As a result, the company, along with other retailers that rely heavily on imported goods, could face higher costs. These costs, according to Cornell, will inevitably be passed on to consumers.

The exact magnitude of the price increases remains uncertain. However, Cornell's warning underscores the potential for considerable disruption in the retail sector. The new tariffs could complicate matters for businesses already grappling with supply chain issues due to the global pandemic. Moreover, they could lead to increased prices in many other sectors, as the tariffs affect not just fresh produce but also other goods imported from Mexico.

While the intention behind the tariffs may be to encourage domestic production and reduce reliance on imports, the potential for higher consumer prices raises questions about the ultimate impact of these measures. As the situation evolves, retailers, consumers, and policymakers alike will be closely monitoring the effects of these new tariffs.

As a result of these new tariffs, American consumers will likely feel the impact quite immediately. As Mexico is one of the largest exporters of fresh produce to the U.S, everyday items like avocados, tomatoes, and bell peppers could see a significant price increase. This could potentially have an impact on the purchasing behavior of consumers, particularly those on a tight budget.

While higher-income households may be able to absorb these increased costs, lower-income families that already struggle with food insecurity could be hit the hardest. These households typically spend a larger proportion of their income on food, and even a small increase in prices can have a significant impact on their budgets.

This is not the first time that tariffs have had a direct impact on consumers. Previous tariffs on Chinese goods, for example, have led to price increases on a range of consumer goods, from electronics to clothing. However, the impact on fresh produce could be particularly concerning given the potential health implications of reduced consumption of fruits and vegetables.

Furthermore, the impact of these new tariffs could extend beyond just food prices. As companies grapple with these increased costs, there could be wider economic implications, including potential job losses in the retail and farming sectors.

While the new tariffs have raised concerns among retail giants, economic experts are also weighing in on the matter. Dr. Cynthia Roberts, a renowned economist, expressed her thoughts on the looming situation. "We might see an immediate shock in the price of goods, especially food items from Mexico. It's not just about avocados or tomatoes. Mexico is a major supplier of a variety of fresh produce to the U.S.," she said.

According to Dr. Roberts, "The cost will inevitably trickle down to consumers, causing a significant increase in grocery bills. The impact of these tariffs will be felt most by lower-income households that spend a larger percentage of their income on food."

Another perspective comes from trade analyst, Mr. Thomas Peterson. "While it's true that the tariffs will lead to a price increase, it's also important to remember that retailers have some control over their pricing strategies. They can choose to absorb some of the cost increases, in order to retain their customer base. However, there's only so much they can do without hurting their bottom line," he commented.

In conclusion, the warning from Target CEO Brian Cornell about the imminent rise in food prices due to new tariffs is a bellwether for potential economic impacts. Especially concerning is the expected increase in prices of produce from Mexico, a primary source of many Americans' daily food products. The effects of these tariffs will not only impact retailers like Target, but also the average American consumer.

While the ultimate goal of these tariffs is to protect domestic industries, the immediate consequences seem to point towards a more expensive market for consumers. It remains to be seen how these price hikes will impact consumer behaviors and the overall economy in the long term. As we move forward, it is crucial to watch how the situation unfolds and what measures will be taken to mitigate the impacts of these tariffs.

Source: https://www.axios.com/2025/03/04/tariffs-food-prices-increase-mexico