Retailers are raising prices, shifting supply chains, and bracing for profit losses as President Trump’s sweeping tariffs drive record customs revenue.
Major retailers are scrambling to adjust to President Trump’s sweeping tariffs, warning of higher prices and shrinking profits as levies reach historic levels.
Estee Lauder said Wednesday it expects a $100 million hit to fiscal 2026 profits, citing tariffs. “We continue to evaluate additional strategies to further mitigate these impacts,” said Akhil Shrivastava, the company’s chief financial officer, noting possible “pricing actions.”
Home Depot said some prices will rise as tariff rates are “significantly higher” than in prior quarters. “There’ll be some modest price movement in some categories, but it won’t be broad-based,” said Billy Bastek, an executive vice president.
Target, which imports half its products, has shifted sourcing globally but warned price hikes remain a last resort. “Value is very top of mind for consumers right now,” said Rick Gomez, chief commercial officer.
The Treasury has collected over $130 billion in duties this year, with Secretary Scott Bessent projecting revenues could exceed $300 billion.