Best Buy and Target brace for price hikes as Trump's tariffs take effect

The big picture: President Trump's long-feared tariffs on Mexican, Canadian, and Chinese imports have finally arrived. As retaliatory tariffs from the affected countries launch a trade war that could severely slow the global economy, retail executives warn consumers to expect price hikes.

The Trump administration enacted a 25 percent tariff on imported goods from Mexico and Canada on Tuesday. Furthermore, the 10 percent tariff imposed on Chinese goods last month has increased to 20 percent, sparking fears of higher consumer electronics prices.

Despite a recent positive financial report, Best Buy's stock plummeted by 13.3 percent following the news, signaling anxiety regarding consumer spending. CEO Corie Barry admitted that China and Mexico are the retailer's two biggest sources and predicted that vendors would pass the new duties on to consumers.

Best Buy is one of the largest sellers of products like game consoles, PCs, and PC components ...