Best Buy CEO Hubert Joly has warned that consumers are likely to be hit by price increases as a result of the Trump administration’s proposed round tariffs reports Reuters. “The impact of tariffs at 25% will result in price increases and will be felt by U.S. consumers,” the CEO said on today’s earnings call.
The comments have come just over a month before a public hearing is due to take place on June 17th, in which the 3,805 products that will be affected by tariffs of up to 25% will be discussed. This list includes gadgets such as laptops, cellphones, and tablets, as well as other everyday items like clothing, books, bedsheets, and fresh produce. If approved, the tariffs could apply from the end of June.
The CEO’s comments echo the predictions made by financial analysts, who argue that the Trump administration’s tariffs are likely to fall either on US businesses or US households, rather than hitting Chinese exporters. Some US-based importers (such as Apple) can have big enough profit margins to be able to absorb the impact of the tariffs without passing them on to consumers, but others, like Best Buy, may be forced to pass some or all of the cost on.