March 5, 2025—As President Trump’s tariffs on Canada, Mexico, and China take effect this week, U.S. importers and exporters are weighing their options on how to handle the increased costs. Some companies are opting to absorb the expenses, while others warn that price increases may be inevitable.
Chipotle CEO Scott Boatwright stated that the company will not raise prices immediately, citing uncertainty about the longevity of the tariffs. “We don’t think it’s fair to the consumer to pass those costs off because pricing becomes permanent,” Boatwright said. However, he acknowledged that if costs remain high, the company may have to reconsider.
Meanwhile, Target CEO Brian Cornell stated that price increases may be unavoidable. “We’re going to try to do everything we can to protect pricing, but if there’s a 25% tariff, those prices will go up,” he said. Best Buy CEO Corie Barry echoed this concern, predicting that consumers would “likely see price increases over the next couple of days” as suppliers pass along costs to retailers.
Walmart CEO Doug McMillon, however, stated that while tariffs pose challenges, the company has long experience of managing them. “We can’t predict what will happen in the future, but we can manage it really well,” McMillon said.
Coca-Cola CEO James Quincey reiterates this sentiment, stating that “if one package suffers some increase in input costs, we continue to have other packaging offerings that will allow us to compete in the affordability space.”
Some companies, like Mattel, have been working to diversify their supply chains for years. Mattel CEO Ynon Kreiz said, “China today represents less than 40% of our global manufacturing, with the US being about half. And in 2 years, no one country will represent more than 25% of our global manufacturing.” He clarifies that this is not solely due to the tariffs. Rather, it is intended to “position Mattel with a very strong supply chain that is flexible and resilient and can respond to changing market conditions such as tariffs.”
In response to the Trump Administration’s recent tariff actions, AAEI’s Customs Committee is launching a Tariff Working Group. AAEI members can join the Tariffs Working Group in the Member Hub to stay informed and involved.
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