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Key Takeaways

• Tariffs imposed Tuesday on imports from Canada and Mexico could result in higher prices for produce at Target within a week, CEO Brian Cornell said.

• Target will try to shield consumers from price increases, but not all can be avoided, Cornell said.

• Best Buy also said the tariffs will push up prices for many electronics at its stores.

Some Target prices could soon rise after tariffs on Mexican imports are enacted, the retailer's CEO said Tuesday.

Target (TGT) will try to shield consumers from as many price increases as it can, but charging more will be necessary for fresh produce and some other categories, Brian Cornell said on CNBC Tuesday morning. The comments came hours after President Donald Trump's administration began imposing a 25% tariff on goods from Mexico and Canada and raised tariffs on items from China to 20%.

Target, along with many U.S. grocers, is dependent on Mexico for fresh produce during the winter, Cornell said. The supply chain for fresh fruits and vegetables is “really short,” which means prices could go up within days, he said. Bananas, strawberries and avocados are among the items that could see higher prices.

“We’re going to try to make sure we can do everything we can to protect pricing,” he said on CNBC. “But if there’s a 25% tariff, those prices will go up.”

Target has reduced how much it imports from China. A few years ago, more than 60% of imports came from the country. That’s now down to 30% and on track to hit 25%, he said.

A number of other companies have also diversified their supply chain to avoid paying more in tariffs, including Steve Madden (SHOO) and Newell Brands (NWL), the latter which sells Yankee candles and Graco baby gear. Mattel (MAT) CEO Ynon Kreiz said Tuesday on CNBC that the toy company is on a years-long journey to diversify its supply chain so it can respond to tariffs and other changing market conditions.

And some companies say they have the wherewithal to hold off on raising prices, at least initially: Chipotle (CMG) CEO Scott Boatwright said over the weekend that the burrito giant will absorb higher import costs.

Best Buy (BBY) imports no more than 3% of its merchandise, but many vendors in the tech industry source from China and Mexico, CEO Corie Barry said Tuesday morning. They’ll pass on at least some of the cost of tariffs to Best Buy, making price increases for consumers “highly likely,” she said on an earnings conference call.

The pre-existing 10% tariff on goods from China could cost Best Buy about 1 percentage point in comparable sales over the course of a year, Barry said, assuming that people buy fewer items because they cost more.