How Major Retailers like Walmart, Costco, and Target Are Preparing for Trump’s Tariffs

On Thursday, President Trump revealed that no luxury goods manufacturer is immune to trade wars, threatening a staggering 200% tariff on European wines, champagnes, and spirits.

According to a report by Yahoo Finance’s Pras Subramanian, European automakers might become the next victims of these increased tariff threats. Here’s what they had to say regarding the potential tariff challenges:

Ferrari (RACE): We’re considering multiple scenarios

“We are prepared with various countermeasures,” stated Ferrari CEO Benedetto Vigna during CNBC’s Converge Live event in Singapore on Thursday morning. “We are currently in a planning phase to effectively navigate whatever may occur.”

Porsche (POAHY): Anticipate price hikes if tariffs are imposed

“When the matter of tariffs becomes definitive, we will evaluate the pricing options available to pass on to our customers,” Porsche CFO Jochen Breckner remarked on Wednesday, suggesting that consumers will bear the brunt of Trump’s tariffs, not the company. “We boast a very strong brand, a dedicated customer base, and excellent products. Therefore, our primary focus will be on additional pricing adjustments.”

BMW (BMW.DE): We’ll maintain price protection temporarily, then ‘reassess’

BMW, which has a significant manufacturing facility in Mexico, is taking a different approach by informing dealers that it will absorb the costs associated with new tariffs on Mexican imports and maintain “price protection” for those vehicles until May 1, as reported by the Wall Street Journal. However, if the tariff situation persists, the company may need to “reassess” this strategy.

Volkswagen (VWAGY): Expanding US production isn’t ‘feasible’ at the moment

Volkswagen Brand CEO Thomas Schäfer noted that relocating production from Mexico, where the well-liked Tiguan SUV is produced, to the US is “not feasible” in the immediate future, according to Reuters. “For now, we’re monitoring the situation and developing contingency plans for long-term strategies,” Schäfer added.

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