May 23rd, 2025
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Repeated tariffs and inconsistent trade actions have made businesses worldwide nervous. Some large retailers in the US have already increased prices or cautioned about possible future increases.
Recently, President Trump introduced new import taxes on many of America's trading partners and specific goods. Some countries, especially China, have responded with their own taxes in return. Although some of the highest taxes have been stopped or lowered, many others remain, creating problems for businesses.
This is because companies importing goods pay the tariffs, leading to increased costs that are usually passed on to customers. Trump claimed these tariffs would boost US manufacturing and investment. However, experts have warned that widespread tariffs could increase prices on many products, due to the global nature of supply chains.
Many companies and their customers are already experiencing this situation. Here are some well-known retailers that have recently announced or expect price increases due to the ongoing trade disputes.
Walmart was the latest company to announce price increases on Thursday, stating that tariffs were driving up their costs.
Although Walmart has taken steps to protect itself from some tariff problems, as two-thirds of its products are made in the US, it will still be affected. Company leaders have noted that prices started to rise in Walmart stores in late April and have increased even more this month. They expect the biggest impact to be in June and July, which is when many people start buying things for the new school year.
John David Rainey, the company's finance director, highlighted rising costs for essential goods; for instance, bananas imported from Costa Rica have increased from 50 to 54 cents per pound. He also anticipates that car seats made in China, currently priced at $350 at Walmart, will probably cost an additional $100 soon.
"We naturally aim to maintain low prices, but there's a limit to what we, or any shop, can handle," Rainey explained to The Associated Press.
Mattel, the company that makes Barbie and Hot Wheels, announced earlier in the month that they would increase prices "where needed" to balance out the costs of tariffs.
The toymaker, which produces 40% of its goods in China, announced possible price increases on May 5th. This was before the US and China agreed to a 90-day pause in their trade war, but tariffs on Chinese goods are still higher than they were before recent increases.
Mattel announced in its recent financial report that it intends to shift production of around 500 items from Chinese factories to suppliers in other countries this year, a significant increase from the 280 products moved last year; for some of its most popular toys, the company will use factories in multiple countries.
In early May, Microsoft increased the suggested prices for Xbox consoles and controllers worldwide. For instance, the Xbox Series S now costs $379.99 in the US, an $80 increase from its original $299.99 price in 2020. The more powerful Xbox Series X will now be sold for $599.99, which is $100 more than its previous price of $499.99.
In a May 1st update on Xbox support, Microsoft acknowledged that these changes might be difficult, citing "market conditions and the increasing cost of development" as reasons, without explicitly mentioning tariffs.
Microsoft has also announced Xbox price changes for Europe, the UK, and Australia, in addition to the US. They stated that other countries will receive local updates too. Furthermore, Microsoft anticipates increasing the price of some new, first-party games to $79.99 later this year.
Last month, both Temu and Shein, major online retailers, announced similar price increases, stating that recent changes to international trade regulations and tariffs were to blame.
In late April, customers noticed that the prices of many goods had risen, especially as the May 2 deadline approached for the de minimis rule, which had allowed shopping sites to import low-value items from China without paying duties for years. While this week's agreement between the U.S. and China has reduced the impact somewhat, these products still have tariffs, with low-value packages from China arriving via the U.S. Postal Service now facing a 54% tariff, reduced from 120%.
Even before this delay, Temu seemed to stop shipping goods from China and started using stock already in the U.S. The shop, which belongs to the Chinese company PDD Holdings, still promotes many items from "local" warehouses that promise "no import costs" for American buyers. At the same time, Shein, based in Singapore, now has a message at checkout saying, "Taxes are part of the price. You won't have to pay more when it's delivered."
Stanley Black & Decker, the tool manufacturer, announced that after increasing prices in April, they intend to do so again between July and September due to rising tariffs.
CEO Donald Allan Jr. stated last month that they are quickly changing their supply network and considering every possibility to lessen the effect of tariffs on customers, while also making sure to protect the company's interests.
Procter & Gamble, a major consumer goods company known for brands like Crest, Tide, and Charmin, has indicated they will probably need to increase prices for customers. Last month, P&G stated they were trying to lower expenses caused by tariffs, possibly by changing suppliers to avoid these charges. However, the company suggests that consumers might see higher prices starting in July.
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