May 23rd, 2025
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Many tariffs (taxes on goods) and changes in trade rules have worried companies around the world. 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 taxes on American goods in return. Some of the biggest 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 called tariffs. This makes things more expensive, and usually, customers have to pay the extra cost. Trump thinks these new taxes will help bring jobs and money back to America. However, many things we buy are made using parts from all over the world. Because of this, experts say that these tariffs will likely make many things, from food to car repairs, cost more.
Many businesses and people who buy from them know this is happening. Some big shops have said they will increase prices because of the trade situation.
Walmart is the newest company to say it will raise prices because of higher costs from tariffs.
Walmart tries to protect itself from some problems with tariffs because most of its products are made in the U.S. But it is still affected. Prices at Walmart started to increase in April and are going up faster now. The company said that things will get worse in June and July, which is when people buy things for going back to school.
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 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 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 a bit to pay for new taxes on imports.
The toymaker makes 40% of its toys in China. They said prices might go up on May 5th. This was before the US and China agreed to stop most of their very high taxes for 90 days. But the taxes on China are still higher than before last month.
Mattel said they want to make about 500 toys in other countries instead of 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 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 these changes might be hard. They didn't talk about taxes, but said things like the market and the cost of making games were making things difficult.
Microsoft also said that Xbox prices will change in Europe, the U.K., and Australia. They will also tell people in other countries about changes there. Later this year, some new games made by Microsoft might cost more, about $80.
Last month, Temu and Shein said they would increase prices because of new rules and taxes for global trade.
In late April, customers noticed that many things cost more, especially before May 2. This was when a rule about not paying taxes on cheap goods from China ended. Shopping websites used this rule for a long time. Later, the U.S. and China made a deal that made things a bit easier. But these goods still have taxes. Now, cheap packages from China that come through the U.S. Post Office have a tax of 54%, which used to be 120%.
Before this help, it seemed Temu stopped sending things from China and used items already in the U.S. The shop, owned by PDD Holdings, still shows many products from "local" stores with "no import costs" for U.S. buyers. Also, Shein says that the price you see includes all taxes, so 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 changes to how they get supplies and looking at all possibilities to reduce the effect of taxes on customers, while also trying to protect their company.
Procter & Gamble, a big company that makes things like Crest toothpaste and Tide detergent, has said that prices may go up for customers. They are trying to lower costs from taxes on imports by changing where they get their materials. But, the company said that prices in shops may increase in July.
May 23rd, 2025
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