Latest news with #Richfield-based
Axios
3 days ago
- Business
- Axios
Best Buy's tariff plan: Raise prices, cut costs and find suppliers
Best Buy CEO Corie Barry said Thursday that the company has already raised prices on some of its products to offset President Trump's tariffs. Why it matters: Despite a federal court striking down the president's authority to impose the tariffs this week, Best Buy said it's planning as if tariffs will remain at their current rates. What they're saying: "I don't think there is anything we would do differently based on the news overnight," Barry told reporters Thursday, per the Wall Street Journal. "What I've really tried to work with the team on is to not actually overreact to any given moment." State of play: The Richfield-based electronics retailer said it's also been negotiating with suppliers to cut costs and reduce its reliance on Chinese goods. The big picture: Barry said tariffs are just one factor weighing on consumer confidence.
Yahoo
09-04-2025
- Business
- Yahoo
Higher tariffs on China threatens Minnesota based Best Buy
The Brief President Trump announced on Monday that he planned to raise tariffs on China to 104%. He had previously imposed other tariffs on the country. The increased tariffs pose challenges to Richfield-based Best Buy, which relies heavily on imports from China. RICHFIELD, Minn. (FOX 9) - President Trump has announced plans to raise tariffs on China to 104% - an escalation that poses serious business challenges to Richfield-based Best Buy. The backstory President Trump on Monday announced plans to raise tariffs on China to 104% beginning on Wednesday. The 50% increase marks a dramatic escalation in the trade war between the U.S. and China. Trump has already imposed 20% tariffs on China in February for fentanyl trafficking. He then announced a separate 34% tariff on the country last week. Why it matters Best Buy relies on China for nearly 60% of the products it sells. Even before the announcement of new tariffs, Best Buy's stock price dropped sharply in the first week of April, falling by nearly 19% in a three-day span. What they're saying In its annual report to federal regulators filed on Feb. 1, Best Buy executives expressed concerns that higher tariffs, saying they, "could have a material adverse impact on our business." In the report, the company said new tariffs "could increase costs, disrupt our supply chain and/or impact the availability of underlying technology critical to our operations." During an earnings call a month later, executives again raised the issue of tariffs, mentioning the word more than two dozen times. Corie Barry, the CEO, said new tariffs would make price hikes "highly likely." The company did not immediately respond to a request for comment on Tuesday. Expert opinion "Best Buy might not be able to pass along all of this to consumers, and so they might reduce some of their margins or some of their profits and that results in lower shareholder values – i.e., their stock goes down – or they might have to lay people off," said Tyler Schipper, an economist at the University of St. Thomas. "The bottom line is that if you're going into a Best Buy, and they've imported these products after Wednesday, they're going to be more expensive.' What's next The new tariffs on China take effect at midnight on Wednesday.
