Trump's tariffs on Mexico, Canada: Companies that have raised alarms

President Donald Trump paused plans to impose tariffs on major U.S. trading partners as part of a broader strategy to control the flow of drugs like fentanyl and illegal immigrants into the U.S.

The U.S. suspended plans to implement a 25% tariff on imports from Mexico and Canada for one month on Monday after Canadian Prime Minister Justin Trudeau agreed to implement a $1.3 billion border plan and appoint a fentanyl czar, while Mexican President Claudia Sheinbaum pledged to supply 10,000 Mexican troops to the U.S.-Mexico border. 

Trump said in a post on Truth Social that negotiations headed by Secretary of State Marco Rubio, Treasury Secretary Scott Bessent and Commerce Secretary Howard Lutnick, and high-level representatives of Mexico will take place over the next month. He also plans to use the time to try and construct a "final economic deal" with Canada during this time.

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The U.S. has not suspended its 10% levy on imports from China, which urged the U.S. to "correct its wrongdoings, maintain the hard-won positive dynamics in the counternarcotics cooperation, and promote the steady, sound and sustainable development of China-U.S. relationship."

The White House said in a statement over the weekend that tariffs "are a powerful, proven source of leverage for protecting the national interest." 

The "orders make clear that the flow of contraband drugs like fentanyl to the United States, through illicit distribution networks, has created a national emergency, including a public health crisis," the White House said. 

Even before his second term as president began, Trump pledged to impose tariffs, which sparked concern among retailers who warned that the cost of their products could increase. Wall Street titan Goldman Sachs also raised concerns that hiking the levies on products will drive up costs for everyday Americans. 

On Sunday, Trump posted on Truth Social that Americans could feel "some pain" but said that it "will all be worth the price that must be paid."

The head of the National Retail Federation (NRF) – the nation's largest trade group - previously warned that shoppers could face higher prices on an array of goods if Trump's proposed tariffs on imports to the U.S. are implemented. The trade group estimated that families could lose between $46 billion and $78 billion in spending power annually.

On Monday, NRF Executive Vice President of Government Relations David French said the United States first "needs a review of our trade relationships to be sure that those relationships are structured to achieve fair, balanced and effective outcomes for American workers and businesses." 

"Tariffs are taxes paid by Americans, and any new tariff tax increases should be methodically and effectively deployed toward only the most strategic goods," French said. "Undertaking a strategic assessment of trade priorities is an important first step." 

He said the trade group is looking "forward to working with the president to see that the resulting policy changes are carefully targeted and create an environment that attracts investment and protects critical industries."

TRUMP'S TARIFFS WOULD DRIVE UP CONSUMER PRICES: NATIONAL RETAIL FEDERATION

U.S. COMPANIES WARNING ABOUT TARIFFS

Costco

During an earnings call in December, Costco CFO Gary Millerchip warned that Trump's proposed tariffs would raise costs for consumers. 

In general, he told analysts that "tariffs raise costs so that's not something that we see as a positive."

"When it rains, it rains on everybody," he added.

Ticker	Security	Last	Change	Change %
COST	COSTCO WHOLESALE CORP.	929.66	-9.09	-0.97%

He said the company is going to try and work with its vendors "to make sure we're looking for ways where we can to mitigate the cost."

Dollar Tree

Dollar Tree – which has high exposure to China – warned that if tariffs are implemented, then the company might have to change product details or sizes and even get rid of items altogether if they become too expensive.

Ticker	Security	Last	Change	Change %
DLTR	DOLLAR TREE INC.	72.75	-4.20	-5.46%

In December, the discount retailer told analysts it has a "wide range of potential actions" it can take to mitigate additional tariffs if they materialize, including changing product details or sizes and even getting rid of items altogether if they become too expensive. 

Dollar Tree said the last time the retailer faced this issue, in 2018 and 2019, it adjusted its products and negotiated lower costs with suppliers. 

"Those options are still at our disposal," interim CEO Michael Creedon told analysts on a Dec. 4 earnings call. "On top of those, we now have detailed plans in place to shift supply sources for most of our products to alternate countries, and multi-price gives us additional flexibility on our product assortment." 

Home Depot

Home Depot CEO Ted Decker told analysts during an earnings call in November that whatever happens with "tariffs will be an industrywide impact. It won't discriminate against different retailers and distributors who are importing goods. The type of product as an industry is generally sourced from the same countries." 

Ticker	Security	Last	Change	Change %
HD	THE HOME DEPOT INC.	358.15	-4.58	-1.26%

Lowe's 

Lowe's Chief Financial Officer Brandon Sink told analysts during an earnings call in November that 40% of its goods sold are sourced outside the U.S., "and that includes both direct imports and national brands through our vendor partners." 

"And as we look at potential impact, [it] certainly would add product costs, but timing and details remain uncertain at this point," Sink said. 

Ticker	Security	Last	Change	Change %
LOW	LOWE'S COMPANIES INC.	228.42	-3.75	-1.62%

Walmart

Walmart Chief Financial Officer John David Rainey warned that Trump's proposed tariffs could lead to higher prices for its shoppers. 

Ticker	Security	Last	Change	Change %
WMT	WALMART INC.	85.15	-0.48	-0.56%

"Tariffs are going to be inflationary. There's no disputing that," Rainey said during an interview with Liz Claman on "The Claman Countdown."

While Rainey said two-thirds of the items the company sells are made, grown or assembled in the U.S., he said it is "in no way immune to this." 

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A Walmart spokesperson said in a statement to FOX Business that the company remains "concerned that significantly increased tariffs could lead to increased costs for our customers at a time when they are still feeling the remnants of inflation." 

The retail industry isn't the only one that's raised concerns. For instance, the head of finance for Stellantis hinted that it could shift production to the U.S. in the event that tariffs are enacted.