Report: President Trump will meet with CEOs of Target and Best Buy
The CEOs of Target and Best Buy will be among those meeting with President Donald Trump on Wednesday.
Target's Brian Cornell and Best Buy's Hubert Joly will join fellow executives representing companies including Walgreens, J.C. Penney and Gap to discuss a proposed border tax on imported goods, Reuters is reporting.
And USA Today says the two CEOs will also meet with lawmakers to try to derail the proposal.
It comes amid concern from some sections of the industry over the border tax, which could have major implications for some retailers.
Target and Best Buy are among the companies who oppose the tax policy, which would change the way companies are taxed on their profits, Reuters says.
And for shoppers, it could also mean the price of goods in those stores goes up.
What would the tax do?
CNBC reports the border adjustment tax would effectively impose a 20 percent tax on imports while reducing the tax burden on exports – meaning retailers that stock their shelves with goods made in other countries would likely pay more tax.
This would have to be approved by Congress before it's implemented.
Given that most of the clothing, electronics and other consumer goods Americans buy are imported, the 20 percent import tax means Best Buy and Target could be two of the biggest losers.
Lee Schafer, writing for the Star Tribune last month, cited analysis from RBC Capital Markets that states Best Buy could be on the hook for billions of dollars in additional taxes under the new system, if it's passed.
The Economist reports the impact of the border tax on companies like Best Buy and Target might be mitigated if the dollar grows in strength alongside it, reducing the cost of imported goods.
However, it says that the dollar would need to rise 25 percent to cancel out the impact of the 20 percent import tax.
The Hill reports that Target and fellow Minnesota company 3M have been among the companies to lobby against the border adjustment tax over the past year.
