Trump’s tariffs on Mexico and Canada: What does it mean for shoppers?

President Donald Trump Trump reiterated his commitment to impose tariffs on imports during his first day in office, saying a 25% tax will be imposed on all goods coming from Canada and Mexico by February. He repeated some of those statements on Tuesday.

His efforts come even after a large number of retailers expressed concerns about tariffs increasing the costs of their products or forcing them to reduce inventory. Wall Street giant Goldman Sachs also raised concerns that raising tariffs on products would lead to higher costs for ordinary Americans.

TJ Maxx CEO says company could benefit from Trump’s proposed tariffs

Trump said last month that tariffs, when used properly, “will make our country rich.”

By contrast, the president of the National Retail Federation (NRF) — the country’s largest trade group — has previously warned that shoppers could face higher prices on a range of goods if Trump’s decisions Proposed tariffs on imports To the United States is implemented. The trade group estimated that households could lose between $46 billion and $78 billion Purchasing power annually.

David French, NRF’s executive vice president for government relations, said Monday that the United States first “needs to review our trade relationships to ensure that those relationships are structured to achieve fair, balanced and effective outcomes for American workers and businesses.”

“Tariffs are taxes Americans pay, and any new tariff increases should be applied systematically and effectively to only the most strategic goods,” French said. “Conducting a strategic assessment of business priorities is an important first step.”

He said the trade group looks forward “to working with the president to ensure that the resulting policy changes are carefully targeted and create an environment that attracts investment and protects critical industries.”

Trump’s tariffs will raise consumer prices: National Retail Federation

American companies warn of tariffs

Costco

During an earnings call in December, Costco CFO Gary Millership warned that Trump’s proposed tariffs would increase costs for consumers.

Overall, he told analysts, “tariffs raise costs, so that’s not something we see as a positive.”

“When it rains, it rains on everyone,” he added.

tape	protection	last	It changes	% changes
It costs	Costco Wholesale Company	944.70	-3.03	-0.32%

He said the company would try to work with its vendors “to make sure we’re looking at ways we can mitigate the cost.”

Dollar tree

Dollar tree — which has significant exposure to China — warned that if tariffs were implemented, the company could be forced to change product details or sizes and even dispose of items altogether if they become too expensive.

tape	protection	last	It changes	% changes
DLTR	Dollar Tree Company	71.97	-1.79	-2.43%

In December, the discount retailer told analysts that it had a “wide range of potential actions” it could take to mitigate additional tariffs if they materialized, including changing product details or sizes and even getting rid of items altogether if they become too expensive.

The last time the retailer faced this issue, in 2018 and 2019, it modified its products and negotiated lower costs with suppliers, Dollar Tree said.

“These options remain at our disposal,” interim CEO Michael Creedon told analysts on a Dec. 4 earnings call. “Furthermore, we now have detailed plans in place to shift supply sources for most of our products to alternative countries, and price versatility gives us additional flexibility in our product assortment.”

Home Depot

Ted Decker, Home Depot’s CEO, told analysts during an earnings call in November that anything that happens with “tariffs will have an industry-wide impact. They will not discriminate against different retailers and distributors that import goods.” The product type as an industry is generally sourced from the same countries.”

tape	protection	last	It changes	% changes
High resolution	Home Depot Company	410.08	-8.43	-2.01%

Louie

Lowe’s CFO Brandon Sink told analysts during a November earnings call that 40% of its merchandise sold is sourced outside the U.S., “and that includes direct imports and national brands through our vendor partners.”

“As we look at the potential impact, it will certainly add to product costs, but the timing and details are still uncertain at this point,” Sinek said.

tape	protection	last	It changes	% changes
a little	Lowe’s Company	258.05	-6.21	-2.35%

Walmart

Walmart CFO John David Rennie warned that Trump’s proposed tariffs could lead to higher prices for shoppers.

tape	protection	last	It changes	% changes
And die	Walmart Inc	93.23	+0.15	+0.16%

“Tariffs will be inflationary. There’s no question about that,” Rennie said during an interview with Liz Claman on “Claman’s Countdown.”

While Rennie said two-thirds of the items the company sells are manufactured, grown or assembled in the United States, he said it is “by no means immune to that.”

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A Walmart spokesperson said in a statement to FOX Business that the company remains “concerned that significantly increasing tariffs could result in increased costs for our customers at a time when they are still feeling the residual effects of inflation.”

The retail industry isn’t the only one raising concerns. For example, Stellantis’ CFO hinted that it could shift production to the United States if tariffs are triggered.