May 23rd, 2025
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Taxes on goods coming in and out of countries, and changes in 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. 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, 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 businesses in the U.S. and bring money back here. However, many things we buy are made using parts from all over the world. Because of this, experts say that these taxes will make many things more expensive, from food to car repairs.
Many shops and shoppers are already seeing this. Some big shops have said they will raise prices because of the trade problems.
Walmart is the newest company to say it will raise prices. On Thursday, the biggest shop in the country said tariffs are making things more expensive.
Walmart tries to avoid some problems with tariffs because most of its products are from the U.S. But they still have some issues. Prices at Walmart went up a bit in late April and more this month, according to the company. They think things will get worse in June and July, which is when people buy a lot of school supplies.
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 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, 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, before the US and China agreed to stop some high taxes for 90 days. But the taxes on goods from China are still higher than before. This is because the US put them up 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. For some very 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 they know these changes are hard. They didn't say tariffs were the reason, but that the market and the cost of making games were changing.
Microsoft also said that Xbox prices will change in Europe, the U.K., and Australia. Other countries will also get local updates about this. Also, some new games made by Microsoft might cost more this holiday season, about $80.
Last month, Temu and Shein said they would raise prices because of changes in world trade rules.
In late April, customers noticed that many things were more expensive, especially before May 2nd. On that day, a rule ended that allowed cheap goods from China to enter the country without taxes. Shopping websites used this rule for a long time. The US and China made a deal this week which 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, Temu seemed to stop sending goods from China and started using products already in the U.S. The shop, which belongs to the Chinese company PDD Holdings, still advertises many things from "local" warehouses that say there are "no import costs" for buyers in the U.S. Also, Shein, which is based in Singapore, now has a message at checkout that says, "Taxes are included in the price. You won't have to pay anything extra 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 more expensive taxes on imported goods.
Donald Allan, Jr., the CEO, said last month that they are changing their supply plans faster 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 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 prices in stores may still increase in July.
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