May 23rd, 2025
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Many tariffs (taxes) and changing trade rules have made companies worldwide 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 imports from many countries that trade with America. This affects different products. Some countries, like China, have added their own taxes in response. Although some of the highest taxes have been stopped or lowered, many others are still in place, which is causing problems for businesses.
This is because companies that buy things from other countries have to pay taxes on them. This makes things more expensive, and often customers have to pay more. Trump said these taxes will help businesses in the U.S. But many things we buy are made in different countries, so experts say these taxes will make many things cost more, like food and car repairs.
Some big shops and their buyers know this is 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 tariffs. They said on Thursday that things cost more for them now.
Walmart tries to protect itself from some tariff problems because most of its products are from the U.S. But it is still affected. Prices at Walmart went up a bit in late April and more this month, according to the company. They expect prices to rise even more in June and July, which is when people buy a lot of things for going back to 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 per pound, which is more than the old price of 50 cents. He also thinks that car seats made in 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, and that's true for all shops," 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 on imports.
The toymaker makes 40% of its toys in China. They said prices might go up on May 5, before the U.S. 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 different countries.
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 the market and the cost of making things are going up.
Microsoft also said that the price of Xbox will change in Europe, the U.K., and Australia, as well as other countries. They also said that some new games made by Microsoft might cost more this Christmas, about $80.
Last month, Temu and Shein said they would increase prices because of changes in world trade rules.
In late April, prices went up for many things, especially before May 2. 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 US and China made a deal this week that helped a little, 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 break, it seemed Temu stopped sending goods from China and started using products already in the U.S. The shop, owned by PDD Holdings, a Chinese company, still advertises many items from "local" warehouses that say there are "no import costs" for American buyers. Also, Shein, which is based in Singapore, now says at checkout that "Taxes are included in the price. You won't pay more when it arrives."
Stanley Black & Decker, who make tools, said they increased prices in April. They plan to increase them again between July and September because tariffs are higher.
Donald Allan, Jr., CEO, said last month that they are making changes to their supply chain faster and looking at all possibilities. They want to reduce the effect of taxes on customers and also protect their company.
Procter & Gamble, a big company that makes things like Crest toothpaste and Tide detergent, said they will probably need to charge customers more. They are trying to lower costs from taxes on imports by changing where they get their materials. But the company said prices in stores may go up in July.
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