### AutoZone CEO Warns of Price Hikes Amid Trump's Tariff Plans

The CEO of AutoZone, Philip Daniele, has issued a stark warning regarding the potential economic repercussions if President Donald Trump’s proposed tariff policies take effect. Following Trump's re-election on November 5, his campaign pledges—such as enforcing heavy tariffs on foreign goods—are poised to reshape the market landscape.

Trump's campaign included promises of significant tax cuts for workers, stricter border controls, and measures to combat inflation. A crucial part of his policy is imposing tariffs ranging from 60% to 100% on Chinese imports and 10% to 20% on goods from other countries. Moreover, he plans to levy a 25% tariff on imports from Mexico and Canada. Trump argued that these tariffs would rejuvenate American industry by encouraging companies to manufacture domestically.

However, Daniele highlighted a critical consequence of these tariffs: higher consumer prices. During an earnings call, he stated that AutoZone would be forced to pass the increased costs from the tariffs directly to customers. “If we get tariffs, we will pass those tariff costs back to the consumer, and we'll pass them through," he said. AutoZone would adjust its pricing in anticipation of the tariffs, a move Daniele deemed necessary to cope with the potential economic hit.

The concern over tariff-induced price hikes extends beyond AutoZone. Companies like Steve Madden, Walmart, and Columbia Sportswear have also voiced their intentions to raise prices if the new tariffs are implemented. Despite these alarms, Trump defended his plan during an interview with John Micklethwait of Bloomberg News, claiming that higher tariffs would incentivize companies to build factories in the U.S., ultimately benefiting the economy.

Despite economic pressures and consumer caution, AutoZone remains financially robust. The company reported a 9% increase in net sales in its fourth-quarter earnings for 2024 compared to the previous year. AutoZone’s operating profit also saw an uptick, rising by approximately 6% to $1.3 billion from the same period in 2023.

As the U.S. braces for the upcoming tariff changes, businesses and consumers alike are preparing for a challenging economic landscape. Daniele’s cautionary remarks underscore the broader concerns within the corporate sector about the potential impact of the incoming administration’s economic policies.