Best Buy CEO Says Price Hikes 'Highly Likely' As Tariffs Take Effect

Best Buy Co., Inc. BBY CEO Corie Barry said on Tuesday’s earnings call that President Donald Trump‘s tariffs will increase prices for consumers and have implications for the entire industry. 

What To Know: Barry said China and Mexico are the company’s top two sources, respectively, and the newly imposed tariffs are going to raise costs for retailers, leading to higher prices for consumers. 

“We expect our vendors across our entire assortment will pass along some level of tariff costs to retailers, making price increases for American consumers highly likely,” Barry said on the call. 

Read More: Trump Tariffs Will Raise Prices ‘Within Days,’ Target CEO Says

The CEO estimated that a 10% tariff on China would decrease comparable sales by 1%, but that a 20% tariff wouldn’t necessarily result in a 2% reduction. He also warned that the implications of tariffs will be felt throughout the industry.  

“We’ve never seen this kind of breadth of tariffs, and this of course impacts the whole industry. So it’s not just a Best Buy question, it is a broad industry question. And I say that because that makes the estimation of the impact all the harder,” Barry said.

“This is bigger than just a discussion about tariffs. It’s just kind of a volatile environment for the consumer,” Barry said. 

Looking Ahead: Best Buy issued a weak earnings outlook for fiscal 2026 with its midpoint below analyst estimates, due in part to declining comparable sales and a cautious consumer. The company also pointed out that its guidance did include impacts from current or proposed tariffs. 

“The giant wild card here, obviously, is how the consumers are going to react to the price increases, in light of a lot of price increases potentially throughout the year and a general consumer confidence that is showing a little signs of weakness at the moment,” Best Buy CFO Matt Bilunas said on the call.

BBY Price Action: According to data from Benzinga Pro, Best Buy shares are down 14.9% at $73.74 amid broad market declines after tariffs went into effect Tuesday. 

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