Donald Trump’s tariffs will likely raise prices for consumers, say Fortune 500 CEOs

This week, President-elect Donald Trump posted on his social media platform, Truth Social, that he’s set to impose tariffs on products from China, Mexico, and Canada on the first day of his presidency. It’s a move that will come with a hefty price. 

“The vast majority of that tariff will probably be passed on to the consumer as a price increase,” said Best Buy CEO Corie Barry on a call with reporters.

CEOs say tariffs will raise prices

Ikea, famous for its ability to offer relatively wallet-friendly furniture, warned that Trump’s tariffs will make it hard to stay above the fray. “Tariffs make it more difficult for us to maintain the low prices and be affordable for many people, which in the end is our goal,” Jesper Brodin, Ingka Group CEO, told CNN. “We have never experienced a period of benefit when we had high tariffs,” he added.

Stating that the hike is “beyond our control” and that the company will “understand and adapt,” he noted that the real blow will be felt by consumers. “We believe tariffs will not support…international companies and international trade, with, at the end of the day, that risk turned up on the bills of customers,” he said.

Tariffs will likely impact the furniture manufacturing and retail space at large.”Whatever happens in tariffs will be an industry-wide impact; it won’t discriminate against different retailers and distributors who are importing goods,” warned Home Depot CEO Edward Decker in an earnings call, according to Reuters. Adding that the company has diversified some of where it sources goods, he acknowledged that “there certainly will be an impact.”

And furniture CEOs are  far from the only executives warning of an icy winter after Trump’s inauguration. Barry said the supply-chain crunch will hit the world of consumer tech if Trump’s proposed tariffs are enacted.

“There’s very little in the consumer electronics space that is not imported,” Barry explained in an earnings call. “Almost everything is imported.” Once again, it’s the shopper who gets burned the most in this equation.

 “For us, that’s the hardest part,” said Barry. “These are goods that people need, and higher prices are not helpful.”

Walmart, the largest retailer in the word, is seemingly no exception to the threat of price hikes. “Tariffs are going to be inflationary, there’s no disputing that,” Walmart finance chief John David Rainey told Fox News. “We’re not immune, and tariffs will be inflationary for customers,” he continued, adding that the company will “work with our suppliers as well as our own private brand assortment to continue to try to bring down prices.”