Companies to hike product prices in US after Trump’s tariffs
Adidas, Shein,Walmart and Best Buy are set to increase product prices in the United States following the implementation of tariffs by the Trump administration. US retail giants are poised to raise their product prices, driven by the ongoing pressure of US President Donald Trump’s baseline tariffs on Chinese imports, which continue to affect US import costs. However, numerous US retailers have indicated that they will not, as Trump suggested, “eat” the additional costs from import taxes, suggesting that items ranging from groceries and clothing to toys and cars could see increased prices for Americans. Donald Trump has declared extensive tariffs on imports from more than 100 nations, including China. Most countries will encounter a baseline tariff of 10 percent, whereas goods from China entering the US will incur a notably elevated tariff of 30 percent. Consequently, retailers in the US have indicated that product prices of goods are likely to rise soon, owing to Trump’s “high” tariffs.
On April 15, the hypermarket chain operator disclosed its intention to raise prices of goods, attributing this decision to tariffs implemented by Donald Trump. Walmart CEO Douglas McMillon characterized the new tariffs as “too high” during an earnings call, stating, “We will do our best to keep our prices as low as possible.” However, considering the scale of the tariffs, even at the lowered levels disclosed this week, we find ourselves unable to fully absorb the pressure due to the constraints of tight retail margins. The price adjustments at Walmart are anticipated to occur at the conclusion of May, with a significant increase expected in June, as reported by CNBC, referencing insights from the company’s chief financial officer, John David Rainey.
Sportswear manufacturer Adidas is expected to raise the prices of its products. During an earnings call on April 29, the company’s chief executive, Bjørn Gulden, remarked, “Given the uncertainty around the negotiations between the US and the different exporting countries, we do not know what the final tariffs will be.” He further noted, “cost increases due to higher tariffs will eventually cause price increases.” The company attributed the increased costs in the US to Trump’s tariffs, highlighting that these elevated expenses are a result of the ongoing fluctuations in tariff policy under his administration.
Ford’s Chief Financial Officer Sherry House indicated that the company anticipates a 1.5 percent increase in US car prices in the latter half of 2025, attributed to tariffs. Ford has also prolonged its “employee pricing” initiative until July, as consumers hurried to purchase vehicles in anticipation of Trump’s tariffs. Imported vehicles are subject to a 25 percent tariff, while the majority of auto components encounter a comparable duty. However, certain manufacturers have the option to apply for partial refunds, at least for the time being.
Japanese automaker Subaru is poised to raise vehicle prices in the US to counterbalance rising costs, referencing “current market conditions.” The automaker, however, did not specify the anticipated magnitude of the price increase. A US spokesperson for the company stated, “The changes were made to offset increased costs while maintaining a solid value proposition for the customer.”
Chinese retailers such as Shein and Temu previously benefited from the ‘de minimis’ exception rule, which allowed shipments of goods valued under $800 to be free from tariffs. Recently, Trump enacted an executive order aimed at eliminating this exemption. In a recent statement, Temu noted, “Due to recent changes in global trade rules and tariffs, our operating expenses have gone up.” In order to continue providing the products you value while maintaining our quality standards, we will implement a price adjustment effective April 25, 2025. Temu’s note resembled an announcement issued by Shein. The two Chinese retailers have raised the prices of specific products. For example, a bathing suit on Shein that previously cost $4.39 is now priced at $8.39, reflecting a 91 percent increase.
Best Buy, an electronics retailer, cautioned during its March earnings call about an impending price increase, stating, “vendors across our entire assortment will pass along some level of tariff costs to retailers, making price increases for American consumers highly likely.”
Procter & Gamble, the household product maker, indicated during an earnings call in April that it would contemplate increasing prices in certain categories and markets. The CEO of P&G, a company that owns brands such as Pampers, Tide, and Charmin, stated in an interview with CNBC, “There will likely be price increases for consumers because tariffs are inherently inflationary.”
Toy manufacturing giant Mattel has announced an increase in prices as a response to elevated tariffs. Chief Executive Ynon Kreiz informed investors that a price increase is under consideration in light of the tariffs implemented by Trump.
In April, Stanley Black & Decker, the owner of a prominent power tool brand, announced an average price increase in the high single digits, a decision influenced by the tariffs imposed. The company has indicated that an additional series of price increases is scheduled for implementation later this year.
