The relentless barrage of tariffs and sporadic trade interventions has created a climate of anxiety for businesses globally, with several major retailers in the US already raising prices or signalling potential future increases.

In recent months, President Donald Trump has implemented novel import taxes on goods from nearly all of the United States' trading partners and specific industries, prompting retaliatory tariffs, particularly from China; while many of the most drastic tariff measures have since been suspended or reduced, a significant cumulative tax burden remains on businesses.

This is because companies that import foreign goods have to pay tariffs, which they usually pass on to consumers through higher prices. While Trump argued that new tariffs would bring manufacturing and money back to the US, economists have long warned that such broad tariffs would lead to price increases across the board, from groceries to car repairs, as many of the products we buy today rely on global supply chains.

Numerous corporations, alongside their consumer base, are already grappling with this reality, exemplified by the recent or imminent price hike announcements from major retailers amidst the ongoing trade conflict.

On Thursday, Walmart became the latest addition to this list, announcing that it would be forced to raise prices in response to increasing costs incurred as a result of tariffs.

While Walmart mitigates some tariff-related risks by sourcing approximately two-thirds of its goods domestically, it remains vulnerable; executives report that price increases began appearing on shelves in late April, with the trend accelerating this month. The more substantial impact, however, is anticipated in June and July, coinciding with the peak back-to-school shopping season.

John David Rainey, the company's Chief Financial Officer, underscored the escalating costs of numerous essential goods, citing the increased price of bananas imported from Costa Rica, which have risen from 50 to 54 cents per pound, and the anticipated $100 price surge for Chinese-manufactured child seats, currently retailing at $350 at Walmart.

Rainey told the Associated Press that while they strive to maintain low prices, every retailer has its limits.

Mattel, the company behind Barbie dolls and Hot Wheels cars, announced earlier this month that they may be forced to raise prices "if necessary" to offset tariff costs.

The company, which manufactures 40% of its products in China, had already warned of price increases on May 5th, prior to the US-China agreement to temporarily freeze the majority of escalating tariffs for 90 days; however, tariff levels remain higher than before President Trump initiated the increases.

In their most recent earnings call, Mattel announced plans to diversify their supply chain this year by shifting production of approximately 500 products from Chinese manufacturers to alternative sources, a significant increase from the 280 products moved in the previous year; furthermore, they intend to utilize multi-sourcing strategies by contracting manufacturing of certain high-demand toys to factories in several different countries.

In early May, Microsoft increased the manufacturer's suggested retail price of Xbox consoles and controllers worldwide; for instance, the Xbox Series S now retails from $379.99 in the US, an $80 increase from its 2020 launch price of $299.99, while the more powerful Xbox Series X has risen by $100 from its original $499.99, now costing $599.99.

In a May 1st Xbox support update, Microsoft acknowledged the difficulty of implementing these changes, citing broader market conditions and escalating development costs as justification, although they stopped short of explicitly addressing tariffs.

Beyond the United States, Microsoft has also recalibrated Xbox pricing for European, British, and Australian markets; further localized adjustments are anticipated in other countries, and a selection of new first-party titles are projected to see a price increase to $79.99 this holiday season.

Last month, e-commerce giants Temu and Shein independently announced price increases, citing recent changes to global trade regulations and tariffs as the justification, despite issuing separate statements with virtually identical content.

The latter half of April saw the commencement of price increases across a wide array of goods, with a notable surge preceding the May 2 expiration of the de minimis rule, a long-standing exemption on low-value Chinese imports frequently utilized by online retailers; although recent Sino-American accords have mitigated some of the financial strain, these items remain subject to tariffs, resulting in a reduction from 120% to 54% in the proportion of low-value Chinese parcels entering via the United States Postal Service.

Even prior to this temporary measure, Temu appeared to be shifting away from direct shipments from China, increasingly relying on its existing U.S.-based inventory; the PDD Holdings-owned e-commerce platform already provides a substantial range of goods to American consumers from local warehouses, advertised as "no import fees," while Shein, headquartered in Singapore, assures customers at checkout that "duties are already paid, with no additional charges due upon delivery."

Having already increased prices in April, tool manufacturer Stanley Black & Decker announced plans for a further price hike in the July-September quarter, citing the impact of rising tariffs.

In a statement released last month, CEO Donald Alan Jr. affirmed that the company is expediting supply chain realignments and exhaustively evaluating all available strategies to safeguard business operations while mitigating the impact of tariffs on end consumers.

Executives at Procter & Gamble (P&G), the multinational consumer goods corporation renowned for household brands like Crest toothpaste, Tide detergent, and Charmin toilet paper, have also indicated a high likelihood of passing on impending price increases to consumers. Despite announcing last month that they were undertaking measures such as diversifying their supply chains to mitigate additional costs incurred by tariffs, P&G anticipates that consumers will still face price hikes as early as July.