May 23rd, 2025
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Lots of tariffs 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 coming into America from other countries. These taxes affected most of America's trading partners and certain types of products. Some countries, like China, put 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 pay taxes on products they buy from other countries. This makes these products more expensive, and shops usually make customers pay the extra cost. Trump said these taxes will help factories and money come back to 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.
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 latest company to say it will raise prices because of new taxes on imported goods.
Walmart tries to protect itself from some problems with taxes on imports. 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 a lot of things for school.
John David Rainey, who is in charge of money at the company, 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 any shop," Rainey said to the news.
The company that makes Barbie dolls and Hot Wheels cars, Mattel, said they might need to charge more for some toys to pay for new taxes.
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 most of their high taxes for 90 days. But the taxes on Chinese goods are still higher than before last month.
Mattel said that this year they want to make about 500 toys in countries other than China. 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 shops around the world. For example, the Xbox Series S now costs $379.99 in the U.S., which is $80 more than it cost 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 higher cost of making things."
Microsoft also said they will change Xbox prices in Europe, the U.K., and Australia. Other countries will also hear about changes for them. Also, some new games made by Microsoft may cost more (about $80) later this year.
Last month, Temu and Shein said they would increase 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 special rule ended that allowed cheap goods from China to enter the country without taxes. Shopping websites had used this rule for a long time. The US and China made a deal this week that made things a little easier, 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 use items already in America. The shop, owned by a Chinese company, still shows many products from "local" warehouses with "no import costs" for American customers. Also, Shein, which is in Singapore, now says at checkout: "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 more expensive taxes on imports.
Donald Allan, Jr., the CEO, said last month that they are making quick changes to their supply chain and looking at all possibilities 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 they will probably need to increase prices for customers. Last month, P&G said they are trying to lower costs from taxes on imported goods by changing where they buy things. But they also said that prices might go up for shoppers in July.
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