Best Buy CEO Corey Barry said Tuesday that personal electronics could become more expensive if President-elect Donald Trump follows through on his threat to slap the deal. New tariffs on foreign goodsAs big retailers struggle to assess the potential impact of the proposed tariffs on their business.
This warning comes a day after Trump's statement new round of tariffs Traveled to Mexico, Canada and China on the first day of his tenure. Before the November 5 election, he had proposed a baseline 10% tariff on all US imports and a 60% tariff on goods shipped from China, arguing that such levies protect domestic manufacturers and American companies. Encourage people to create jobs at home.
Any additional 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 is very little [the] Consumer electronics sector which is not imported.”
“These are goods that people need and higher prices are not helpful,” he said.
Price increases are not guaranteed, Barrie cautioned, adding that any impact on retailer costs and prices is dependent on how any new tariffs are implemented.
“I think it's going to be a very fluid situation as we continue to work on it,” he said. He said the company will “make sure we do everything we can to keep the prices right for our customers.”
Barry said during the call that Best Buy may try to partially offset the impact of the new tariffs by importing more goods before the levies take effect in 2025, as well as to source products from countries other than China. Can work with vendors. About 60% of Best Buy's merchandise is imported from China.
“We are already planning and working with our vendor partners on next steps,” he said.
Barry's comments have been echoed by other retailers and manufacturers who are bracing for the impact of higher tariffs on their supply chains. Consumer Technology Association (CTA) caution Trump's proposed tariffs could increase prices for smartphones, laptops and tablets, connected devices, video game consoles and computer accessories.
Ed Bryzteva, CTA's vice president of international trade, said many of the trade group's members are “front-loading 2025 imports into 2024 to get ahead of the tariffs.”
As far as the possibility of higher prices for consumers, “a lot of people are now waking up to the fact that this could be a reality,” he said.