May 23rd, 2025
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Many taxes on imports and changing trade rules have made companies 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. This affects most of America's trading partners. Some countries, like China, have put their own taxes on American goods in return. Some of the highest taxes have been stopped or lowered, but many others are still in place, which is making things difficult for businesses.
This is because companies that buy things from other countries have to pay extra taxes called tariffs. This makes the things they sell more expensive, and often customers have to pay more. Trump said these new taxes will help businesses in the U.S. and bring money back. 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 the trade problems.
Walmart is the newest company to say they will increase prices. On Thursday, the biggest shop in the country said they have to charge more because of new taxes that make things cost more.
Walmart tries to protect itself from some problems with taxes on imports, 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. However, things will get worse in June and July, which is when people buy a lot of 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, will probably cost $100 more soon.
"We always try to have low prices, but we can only do so much, like any shop," Rainey told a reporter from The Associated Press.
The company that makes Barbie dolls and Hot Wheels cars, Mattel, said earlier this month that they will need to increase prices "when needed" to pay for tariffs.
The toymaker makes 40% of its toys in China. They said prices might go up on May 5, 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 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 these changes might be hard. The company didn't say tariffs were the reason, but they mentioned "market problems and the increasing cost of making games."
Microsoft also said that Xbox prices will change in Europe, the U.K., and Australia. Other countries will hear about changes for them too. Also, some new games made by Microsoft might cost more this Christmas, about $80.
Last month, Temu and Shein said they would raise prices because of changes in world trade rules.
In late April, many customers noticed that prices went up, especially before May 2nd. This was when a rule about not paying taxes on cheap goods from China was going to end. Many shopping websites used this rule for a long time. The US and China made a deal this week which made things a bit easier. But these goods still have taxes. Now, cheap packages from China that come through the US 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 America. The shop, owned by a Chinese company, still advertises many items from "local" warehouses with "no import costs" for American buyers. Also, Shein, a company in Singapore, now says that "Taxes are included in the price. You won't pay more when it arrives."
Stanley Black & Decker, who make tools, said they made prices higher in April. They plan to make them higher 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 how they get and move their products and looking at all possibilities to lessen the effect of taxes on customers, while also taking care to protect 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 imports by changing where they get their materials. But they said prices in stores might go up in July.
May 23rd, 2025
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