May 23rd, 2025
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Taxes on goods coming in and out of countries, and changes in trade rules, have made businesses worried. 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 that America buys from other countries. Some countries, like China, have added their own taxes in response. Some of the highest taxes have been stopped or made smaller, but many others are still making things difficult for businesses.
This is because companies that buy things from other countries have to pay taxes on them. This makes things more expensive, and shops usually make customers pay the extra cost. Trump said these taxes will help America make more things here and get more money. But many things we buy are made in different countries, so experts say these taxes will make many things more expensive.
Many shops and customers know this is happening. Some big shops have said prices will go up because of trade problems.
Walmart is now on the list. On Thursday, the biggest shop in the country said they need to charge more money because things from other countries cost more.
Walmart tries to protect itself from some problems with tariffs because most of its products are made in the U.S. But it will still be affected. Prices at Walmart went up a bit in late April and are rising faster now, according to the company. They expect bigger price increases in June and July, which is when many people shop for school supplies.
John David Rainey, the company's finance boss, said that prices are increasing for many important things. For example, bananas from Costa Rica now cost 54 cents a pound, which is more than the old price of 50 cents. Also, he thinks car seats made in 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 said to 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.
The toymaker makes 40% of its toys in China. They said prices might go up on May 5. This was before the U.S. and China agreed to stop most of their high taxes for 90 days. But the taxes on products from China are still higher than they were before last month.
Mattel said they want to make about 500 toys in countries other than China this year. Last year, they did this for 280 toys. For some very popular toys, they will use factories in more than one country.
In May, Microsoft made Xbox consoles and controllers more expensive 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 they know these changes are hard. They didn't say tariffs were the reason, but they said it was because of "market conditions and the rising cost of development."
Microsoft also said they will change Xbox prices in Europe, the U.K., and Australia, not just in the U.S. Other countries will also hear about changes for them. Also, some new games made by Microsoft will cost more money around Christmas time, about $80.
Last month, Temu and Shein said they would increase their prices. They both said the same thing: "New rules for world trade and taxes made this happen."
In late April, many customers noticed that prices went up, especially before May 2nd. This was when a special rule ended that allowed cheap goods from China to enter without taxes. Shopping websites used this rule for a long time. The U.S. and China made a deal this week that helped a bit. But these goods still have taxes. Now, cheap packages from China that come through the post office have a tax of 54%, which used to be 120%.
Before this change, it seemed Temu stopped sending goods from China and used products already in the U.S. The shop, owned by PDD Holdings, still advertises many items from "local" warehouses with "no import costs" for U.S. buyers. Also, Shein says that the price includes all taxes, so customers won't pay extra when the order arrives.
Stanley Black & Decker, who make tools, said they made prices higher in April. They plan to do it 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 possibilities to reduce the effect of tariffs on customers, while also protecting their company.
Procter & Gamble, a big company that makes things like Crest toothpaste and Tide detergent, has said that prices might go up for customers. They are trying to lower costs from taxes on imports by changing where they get their materials. But the company says that prices could still increase in shops as early as July.
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