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Target: Tariffs just one factor in 'massive potential costs' ahead
May 21, 2025
Target CEO Brian Cornell is warning shareholders and consumers of "massive potential costs," partly due to the tariffs imposed by President Donald Trump.
Cornell called the tariffs one element in a series of "massive potential costs," that Target is facing, according to a NBC News report. The list includes consumer uncertainty.
The retail leader made the statements during a Wednesday's earning call where he also stated price increases are a "last resort," according to an ABC News report.
The news comes on the heels of Home Depot stating it will not be hiking prices due to tariffs.
Walmart, last week, said it will be raising prices due to tariffs.
In response to Walmart, President Donald Trump told the biggest U.S. retailer to eat the costs and not pass it down to shoppers.
Target's latest earnings show a drop in sales in the first quarter of 2025.
"The difficulty level has been incredibly high given the rates we're facing and the uncertainty about how these rates in different categories might evolve," Cornell said during the call, according to the news outlet. "We're focused on supporting American families and how they manage their budgets."
Retail sales grew in April as consumers increased buying to avoid higher prices expected with tariffs, according to the CNB/NRF Retail Monitor.
Yet a good majority of American consumers, 75%, expect tariffs to take effect soon and 51% plan to cut non-essential purchases.
