Best Buy says Trump’s tariffs could force it to raise prices for consumers

Best Buy CEO Corie Barry said Tuesday that personal electronics could become more expensive if President-elect Donald Trump carries out his threat to slap new tariffs on foreign goods, as large retailers scramble to assess the potential impact of the proposed levies on their business. 

The warning came one day after Trump said he would impose a new round of tariffs on Mexico, Canada and China on his first day in office. Before the Nov. 5 election, he had proposed a baseline 10% tariff on all U.S. imports and a 60% tariff on goods shipped from China, arguing the such levies protect domestic manufacturers and encourage American companies to create jobs at home. 

Any added costs on U.S. imports from the three counties “will be shared by our customers,” Barry told investors in the company’s Nov. 26 earnings call, noting that “there’s very little in [the] consumer electronics space that is not imported.”

“These are goods that people need, and higher prices are not helpful,” she added.

Price hikes are not guaranteed, Barry cautioned, saying that any impact on the retailer’s costs and prices are contingent on how any new tariffs might be implemented. 

“I think it’s going to be a very fluid situation as we continue to work through it,” she said, adding that the company will “make sure we do everything we can to keep prices right for our customers.”

Best Buy could try to partly offset the impact of new tariffs by importing more goods ahead of levies taking effect in 2025, as well as working with vendors to source products from countries other than China, Barry said during the call. Roughly 60% of the goods Best Buy sells are imported from China. 

“We are already planning for and working with our vendor partners on next steps,” she said. 

Barry’s comments are echoed by other retailers and manufacturers bracing for the impact of higher tariffs on their supply chains. The Consumer Technology Association (CTA) has warned that Trump’s proposed tariffs could lead to higher prices for smartphones, laptops and tablets, connected devices, video game consoles, and computer accessories. 

Ed Brzytwa, the CTA’s vice president of international trade, said a number of the trade group’s members are “front-loading 2025 imports into 2024 to get out ahead of the tariffs.” 

As far as possible price hikes for consumers, “A number of people are waking up now to the fact that this could be a reality,” he said.