President-elect Donald Trump’s proposed tariffs have already begun to upend businesses in several industries and many are taking action to safeguard their profits. The tariffs, which include a 10-20% tax on all imports and a potential 60-100% on goods from China, are causing significant concern – and the costs are likely coming right to consumers' wallets.
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Philip Daniele, the CEO of AutoZone (NYSE:AZO), has stated unequivocally that if these tariffs are imposed, consumers will bear the expense. On a recent earnings call, Daniele said, “If we get tariffs, we will pass those tariff costs back to the consumer.” The company expects to raise prices even before the tariffs take effect, anticipating how these new policies will impact its margins.