May 23rd, 2025
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Many tariffs (taxes on goods) and changes in trade rules have worried companies around the world. Some big shops in the U.S. have already increased prices, or said they might do so soon.
Recently, President Trump put new taxes on many things coming into America from other countries. These taxes affected many of America's trading partners and certain types of products. Some countries, like China, put their own taxes on American goods in response. Some of the highest taxes have been stopped or lowered since then, but many other taxes are still in place, which is causing problems for businesses.
This is because companies that buy products from other countries have to pay taxes on them. This makes the products more expensive, and often customers have to pay more too. Trump said that these taxes will help bring jobs and money back to America. But many things we buy are made in different countries, so experts say these taxes will make many things more expensive.
Many shops and shoppers already see this happening. Here are some well-known shops that have said prices will go up because of the trade problems:
Walmart is the newest company to say it will raise prices because of new taxes on imported goods.
Walmart tries to protect itself from some tax problems because most of its products are made in the U.S. But it is still affected. Prices at Walmart went up a little in April and more this month, according to the company. They think things will get worse in June and July, which is when people buy things for school.
John David Rainey, the company's finance boss, said that many important things are becoming more expensive. For example, bananas from Costa Rica now cost 54 cents a pound, which is more than the old price of 50 cents. He also thinks that car seats from China, which cost $350 at Walmart now, will probably cost $100 more soon.
"We always try to have low prices, but we can only do so much, and that's true for any shop," Rainey told the news.
The company that makes Barbie dolls and Hot Wheels cars, Mattel, said they might need to increase prices to pay for new taxes on imported goods.
The toymaker makes 40% of its toys in China. They said prices might go up on May 5. This was before the US and China agreed to stop most of their high taxes for 90 days. But the taxes on Chinese goods are still higher than before last month.
Mattel said they want to make about 500 toys in countries other than China this year. Last year, they moved 280 toys. For some popular toys, they will use factories in more than one country.
In May, Microsoft increased the prices of its Xbox consoles and controllers in many countries. For example, the Xbox Series S now costs $379.99 in the U.S., which is $80 more than the $299.99 price in 2020. The Xbox Series X will now cost $599.99, which is $100 more than before.
Microsoft said in May that these changes are hard. They didn't talk about taxes, but said things like "the market" and "making games costs more" were the reason.
Microsoft also said that the price of Xbox will change in Europe, the U.K., and Australia. Other countries will also hear about changes for them. Later this year, some new games made by Microsoft will cost more, about $80.
Last month, Temu and Shein said they would increase prices because of changes in international trade rules.
In late April, many customers noticed that prices went up, especially before May 2nd. This was because a rule that allowed cheap imports from China without taxes was ending. Shopping websites had used this rule for a long time. Later, the U.S. and China made a deal that made things a bit easier. But these products still have taxes. Now, cheap packages from China that come through the U.S. Postal Service have a tax of 54%, which used to be 120%.
Before this change, Temu seemed to stop sending goods from China and started using products already in the U.S. The shop, owned by a Chinese company, still advertises many items from "local" storage places that say there are "no import costs" for American buyers. At the same time, Shein, which is based in Singapore, now says when you pay that "Taxes are included in the price. You won't need to pay more when it arrives."
Stanley Black & Decker, who make tools, said they made prices higher in April. They plan to do this again between July and September because of higher taxes on imports.
Donald Allan Jr., the CEO, said last month that they are making quick changes to their supply chain and looking at all choices to reduce the effect of taxes on customers, while also protecting their company.
Procter & Gamble, a big company that makes things like Crest toothpaste and Tide detergent, said they will probably need to increase prices for customers. Last month, P&G said they are trying to lower costs from taxes on imported goods by finding new suppliers. But they said prices in shops may go up in July.
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