Target expected to raise prices due to tariffs

(CNN)– Target is signaling its prices are likely heading higher.

The retailer is cutting its earnings guidance as it expects the Trump Administration’s tariffs will push up costs.

This announcement comes as Target’s bottom line is on a downward trend.

On Wednesday, May 21, the company reported its sales fell during the last quarter.

Target said that was due in part to customer backlash over its decision to reverse its diversity, equity and inclusion programs.