AKP Phnom Penh, March 05,2025--
Target Corporation, one of the largest retailers in the United States, warned of price hikes on produce after U.S. President Donald Trump's 25 percent tariffs on imports from Mexico and Canada took effect on Tuesday.

Brian Cornell, the chief executive officer of Target, told CNBC in an interview on Tuesday that shoppers will likely see produce prices increase in the coming days due to Trump's tariffs on Mexican imports.

He noted in the interview that Target relies heavily on Mexican produce during the winter months, and the tariffs could force the company to raise prices on fruits and vegetables as soon as this week.

Cornell was quoted as saying that prices could rise for produce like strawberries, avocados and bananas.

Target announced its fourth-quarter and full-year 2024 results on Tuesday. The company said its total comparable sales increased 1.5 percent in the fourth quarter, reflecting a comparable store sales decline of 0.5 percent and a comparable digital sales increase of 8.7 percent.

Full-year net sales decreased 0.8 percent to 106.6 billion U.S. dollars from 107.4 billion dollars last year, while full-year operating income of 5.6 billion dollars in 2024 declined 2.5 percent from 5.7 billion dollars last year, according to the company.

"In light of ongoing consumer uncertainty and a small decline in February net sales, combined with tariff uncertainty and the expected timing of certain costs within the fiscal year, the company expects to see meaningful year-over-year profit pressure in its first quarter relative to the remainder of the year," said the company in a news release.

"During February, we saw record performance around Valentines Day. However, our topline performance for the month was soft, as uncharacteristically cold weather across the U.S. affected apparel sales, and declining consumer confidence impacted our discretionary assortment overall," Jim Lee, the chief financial officer, added in the news release.

Target, headquartered in Minneapolis, Minnesota, has nearly 2,000 stores in neighborhoods and communities around the country.

AKP-Xinhua