May 23rd, 2025
Create an account or log in to unlock unlimited access!
Taxes on many goods, and changes in trade rules, have made companies worldwide worried. Some big shops in the U.S. have already increased prices or said they will do so soon.
Recently, President Trump put new taxes on imports from many countries that trade with America, and on some specific products. China and other countries have put their own taxes on American goods in return. Some of the highest taxes have been stopped or made smaller, but many other taxes are still 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 they usually make customers 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.
Many shops and shoppers are seeing this now. Here are some big shops that have said prices will go up because of the trade problems:
Walmart is the newest company to say it will increase 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 late April and more this month, the company said. The biggest changes will happen in June and July, when people buy 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 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, 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 the news.
The company that makes Barbie dolls and Hot Wheels cars, Mattel, said they might need to increase prices to cover extra costs from taxes on imports.
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 some taxes for 90 days. But taxes on China 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 did this for about 280 toys. They also said that some very popular toys will be made in more than one country.
In May, Microsoft made Xbox consoles and controllers more expensive in shops around the world. 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 it was because of taxes, but because of "the market and the cost of making things."
Microsoft also said that Xbox prices will change in Europe, the U.K., and Australia. They said that other countries will also hear about changes for them. Also, 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, customers noticed that many things cost more, especially before May 2. This was because of a rule about cheap imports from China, which some websites used to avoid taxes. The US and China made a deal this week that made things a bit easier. But, these products 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, Temu seemed to stop sending goods from China and use products already in the U.S. The shop, which belongs to the Chinese company PDD Holdings, still advertises many items from "local" warehouses with "no import costs" for U.S. buyers. Also, Shein, a company in Singapore, now says at checkout: "Taxes are included in the price. You won't pay more when it's delivered."
Stanley Black & Decker, who make tools, said they made prices go up in April. They plan to make them go up again between July and September because of higher taxes on imported goods.
Donald Allan, Jr., CEO, said last month that they are changing their supply chain faster and looking at all choices 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, said they will probably need to increase prices for shoppers. They are trying to lower costs from taxes on imports by changing where they get their materials. But prices might still go up in July.
May 23rd, 2025
US Confidence Rises After Worries About Prices
US Confidence Rises After Worries About Prices
US and Europe: A Trade Fight. What Does the US Want? What Can Europe Do?
US and Europe: A Trade Fight. What Does the US Want? What Can Europe Do?
Salesforce to Buy Informatica for Around $8 Billion
Salesforce to Buy Informatica for Around $8 Billion
Companies in Europe Spend Less Money in China Due to Slower Economy
Companies in Europe Spend Less Money in China Due to Slower Economy
Starbucks Workers Strike Over New Uniform Rules
Starbucks Workers Strike Over New Uniform Rules
Japan's Economy Gets Smaller: Trade Problems Hurt Sales and Worry People
Japan's Economy Gets Smaller: Trade Problems Hurt Sales and Worry People
Asian Shares Not Clear After China-US Talk
Asian Shares Not Clear After China-US Talk
Wall Street Goes Up After Fed Talks About Risks
Wall Street Goes Up After Fed Talks About Risks
Trump's Talk on Trade: Tariffs Get More Confusing
Trump's Talk on Trade: Tariffs Get More Confusing
Create an account or log in to continue reading and join the Lingo Times community!