Former Target Exec Storch: Trump Tariff Concerns ‘Grossly Exaggerated’

Varney The former Toys ░░░░░░░░ Us chief executive Gerald ░░░░░░░░ sitting next to me ░░░░░░░░ a matter of fact ░░░░░░░░ ran one of the ░░░░░░░░ toy stores in the ░░░░░░░░ How would you have ░░░░░░░░ the present situation if ░░░░░░░░ could expect China made ░░░░░░░░ to go up 10 ░░░░░░░░ in price How would ░░░░░░░░ have handled it STORCH ░░░░░░░░ first of all they ░░░░░░░░ not going to go ░░░░░░░░ 10 to 15 or ░░░░░░░░ in price Varney No ░░░░░░░░ No I think this ░░░░░░░░ thing with the tariffs ░░░░░░░░ grossly exaggerated by a ░░░░░░░░ of at least two ░░░░░░░░ don t know what ░░░░░░░░ Varney Why do you ░░░░░░░░ that STORCH Because the ░░░░░░░░ are only in the ░░░░░░░░ of the goods they ░░░░░░░░ not in the retail ░░░░░░░░ So if you put ░░░░░░░░ tariff on the cost ░░░░░░░░ the goods at 20 ░░░░░░░░ doesn t mean the ░░░░░░░░ price goes up by ░░░░░░░░ Not unless you could ░░░░░░░░ everything at cost somewhere ░░░░░░░░ when they put tariffs ░░░░░░░░ toys back in the ░░░░░░░░ Trump Administration the studies ░░░░░░░░ 87 of the increase ░░░░░░░░ borne by the Chinese ░░░░░░░░ China has a huge ░░░░░░░░ industry and they have ░░░░░░░░ to gain and nothing ░░░░░░░░ lose by keeping the ░░░░░░░░ rather than have it ░░░░░░░░ to America like a ░░░░░░░░ of it will do ░░░░░░░░ there are substitute products ░░░░░░░░ know products that you ░░░░░░░░ sell that are made ░░░░░░░░ the U S instead ░░░░░░░░ you just promote those ░░░░░░░░ then of course there ░░░░░░░░ be transfer of some ░░░░░░░░ to the U S ░░░░░░░░ Well outside toys you ░░░░░░░░ t expect tariffs to ░░░░░░░░ a major impact on ░░░░░░░░ in America STORCH I ░░░░░░░░ people are hysterical It ░░░░░░░░ not nearly the magnitude ░░░░░░░░ what they re talking ░░░░░░░░ And keep in mind ░░░░░░░░ retailers are going to ░░░░░░░░ just fine no matter ░░░░░░░░ happens because if they ░░░░░░░░ to pass along a ░░░░░░░░ increase they all will ░░░░░░░░ the same time So ░░░░░░░░ will go up their ░░░░░░░░ won t go up ░░░░░░░░ terms of labor and ░░░░░░░░ things like that Proportionally ░░░░░░░░ think they re going ░░░░░░░░ do just fine But ░░░░░░░░ don t think it ░░░░░░░░ going to go up ░░░░░░░░ as much as people ░░░░░░░░ for all the reasons ░░░░░░░░ just outlined Meanwhile if ░░░░░░░░ starts to do that ░░░░░░░░ in mind President Trump ░░░░░░░░ his group they can ░░░░░░░░ they ve shown they ░░░░░░░░ do that they can ░░░░░░░░ flexible And not doing ░░░░░░░░ s really damaging Varney ░░░░░░░░ you ve got five ░░░░░░░░ since the pandemic Compare ░░░░░░░░ performance in those five ░░░░░░░░ of E commerce and ░░░░░░░░ and mortar retail STORCH ░░░░░░░░ commerce is a long ░░░░░░░░ trend It continues to ░░░░░░░░ well year after year ░░░░░░░░ a year It s ░░░░░░░░ all a E commerce ░░░░░░░░ Remember pets com or ░░░░░░░░ a lot of them ░░░░░░░░ just plain out of ░░░░░░░░ I ve got stories ░░░░░░░░ could take 10 hours ░░░░░░░░ the disasters of some ░░░░░░░░ commerce companies But Amazon ░░░░░░░░ been doing great and ░░░░░░░░ massive share Meanwhile in ░░░░░░░░ and mortar what you ░░░░░░░░ is the good companies ░░░░░░░░ doing even better so ░░░░░░░░ Costco which we both ░░░░░░░░ I was there this ░░░░░░░░ the lines were almost ░░░░░░░░ the door they were ░░░░░░░░ long just to check ░░░░░░░░ there You know Amazon ░░░░░░░░ course is doing great ░░░░░░░░ they have physical stores ░░░░░░░░ well Varney Amazon s ░░░░░░░░ favorite isn t it ░░░░░░░░ Well no actually Costco ░░░░░░░░ because I think they ░░░░░░░░ the lowest cost producer ░░░░░░░░ the marketplace If you ░░░░░░░░ something there it s ░░░░░░░░ to be least expensive ░░░░░░░░ anywhere And the other ░░░░░░░░ I like is TJX ░░░░░░░░ the place has a ░░░░░░░░ people love it It ░░░░░░░░ t even have much ░░░░░░░░ an internet offering yet ░░░░░░░░ does so well year ░░░░░░░░ year after year It ░░░░░░░░ worth something like 130 ░░░░░░░░ Varney You ve been ░░░░░░░░ me to buy Costco ░░░░░░░░ a long long time ░░░░░░░░ I never do I ░░░░░░░░ take your advice You ░░░░░░░░ gloat if you like ░░░░░░░░ it s okay Gerald ░░░░░░░░ everyone he knows what ░░░░░░░░ s talking about Thanks ░░░░░░░░ much.”