But the manufacturers that sell products in Best Buy, like Apple and Samsung, heavily rely on international manufacturing. If those manufacturers pass along tariff costs to Best Buy and other retailers, it will likely result in higher prices for consumers, Barry said during Best Buy’s fourth-quarter earnings on March 4.
The potential impact of tariffs were not included in Best Buy’s broad financial guidance for the upcoming year. However, Best Buy estimates that the China tariffs that went into effect on Feb. 4 will result in one negative percentage point in this year’s sales.
“I think I need to state the obvious—we’ve never seen this kind of breadth of tariffs and this, of course, impacts the whole industry,” Barry said. “It’s not just a Best Buy question. It is a broad industry question. And I say that because that makes the estimation of the impact all the harder, especially when you’re in the guts of a replacement and upgrade cycle where people really need the stuff.”
The Campbell’s Company: Mick Beekhuizen, CEO, president, and director
Pricing will go up depending on the duration of the tariffs
“If I look at this particular situation, it’s obviously evolving. It’s multifaceted,” Beekhuizen said during fiscal second-quarter earnings on March 5.
“On the one hand, we have the country tariffs, with both Canada and Mexico specifically for us, and then also some of the proposed steel and aluminum tariffs. Then there might even be additional tariffs that we are obviously closely monitoring the situation and making sure we develop plans if they were to come to fruition.
“But if it gets implemented as is currently announced, we are importing from Canada both tinplate steel, which is used in our cans, as well as canola oil used for our chips.
“On the flip side, with some of the reference to the retaliatory tariffs, those mainly relate to Canadian exports. We are producing our soup in the United States, and we’re importing it into Canada—and that would obviously have an impact on that business.
“We’re closely working with our suppliers to mitigate potential impact. At the same time, depending on how long these tariffs would be in place, as well as the extent of the tariffs, we might need to take other actions. And that could include, for instance, pricing for some of our products. That being said, I’m going to be very focused to make sure that we provide a good value to our consumers.”
Chipotle: Scott Boatwright, CEO
Prices will stay the same
Chipotle relies on a lot of avocados imported from Mexico. But Boatwright recently told NBC News that the fast-casual restaurant will absorb any cost increases from tariffs, regardless of how expensive its ingredients will get.
His comment is a reversal from February, when Chipotle downplayed the impacts of tariffs during its fiscal fourth-quarter earnings. At the time, Chipotle said that only half of its avocados come from Mexico.
E.l.f. Cosmetics: Mandy Fields, chief financial officer
Diversifying beyond China, and learning from past tariff wars
E.l.f. Cosmetics makes most of its products in China, and is using its previous experience with rising tariffs in 2019 to withstand the new changes, Fields said during its fiscal third-quarter earnings on Feb. 6.
