The big challenge: President Trump’s tariffs on China and Mexico—where Best Buy sources about 55% and 20% of its products, respectively—are set to drive up costs, forcing the retailer to raise prices for consumers.

• With roughly six weeks of supply on hand at any given time, Best Buy expects the impact of pricing changes to hit in the second through fourth quarters of the fiscal year.
• Although the Trump administration’s tariff policies remain highly fluid—with uncertainty around their duration, timing, scope, and potential industry and consumer reactions—Best Buy’s models suggest a clear downside. If the 10% China tariffs that took effect on February 4 remain in place for the full year, the retailer anticipates a roughly 1-percentage-point drag on comparable sales from Q2 through Q4.