Retailers are scrambling as Trump’s latest tariffs take effect, driving up costs and forcing companies to rethink their strategies overnight. The new trade measures include a 25% tax on imports from Canada and Mexico and a 20% levy on goods from China, triggering price hikes and logistical headaches across industries.
For retailers like Target, the challenge is clear: rising import costs mean higher prices for consumers – particularly on essentials like fresh produce. But beyond immediate sticker shock, these policies are disrupting long-term business strategies, pushing brands to restructure supply chains, rework pricing models and adapt to an increasingly volatile market…
“Retailers will need to make calculated decisions that balance conversion, revenue, margins, and competitive positioning,” says John Bruno, vice-president of commerce strategy at AI-powered commerce platform PROS. “Since simply passing the cost to the customer could lead shoppers to another retailer, businesses will likely eat part of the tariff and pass along part to the customer. It’s a lose-lose situation – margins suffer and customers pay more at checkout.”