Retailers Begin Raising Prices as Trump Tariffs Take Effect

Retailers in the U.S. are starting to raise prices as the impact of President Donald Trump’s new tariffs takes hold. Big brands like Costco, Best Buy, Walmart, Target, Nike, Mattel, and Macy’s have either already raised prices or plan to do so in the coming weeks.

The new tariff policy, introduced in April, includes a 30% tax on goods from China and 10% on imports from many other countries. The changes are forcing retailers to adjust pricing in order to protect profits.

What’s Happening?

Retailers are caught between rising import costs and customers trying to avoid paying more. During recent earnings calls, company executives said the tariffs are making it harder to plan their business. Some companies are being open about price increases, while others are using broader terms like “economic uncertainty.”

Companies That Have Already Raised Prices:

• Costco: Raised prices on some items like flowers but kept prices steady on basics like bananas.

• Best Buy: Started raising prices on certain products in mid-May.

• SharkNinja: Increased prices on appliances, including raising the cost of one espresso machine by $50.

• Newell Brands: Raised prices by about 20% on baby gear like strollers and car seats.

Companies Planning to Raise Prices:

• Walmart: Said prices may go up in late May and June on items like toys, electronics, bananas, avocados, and coffee.

• Nike: Will raise apparel prices by $2–$10 and shoes by $5–$10 starting June 1.

• Target: Plans to increase prices on some items. Executives say they are constantly reviewing pricing.

• Mattel: Will raise prices “where necessary” and plans to reduce its dependence on China.

• Macy’s: Will raise prices on selected items and drop others to reduce the impact of tariffs.

Companies Still Deciding:

• Ralph Lauren: Considering price hikes for fall and spring collections.

• VF Corp (The North Face, Vans, Timberland): Reviewing pricing as one of several steps to manage higher costs.

Company Not Raising Prices:

• Home Depot: Said it will keep prices the same. The company sources most products from within the U.S. and has reduced its reliance on any one country.

Why It Matters:

Retailers are under pressure as tariffs increase the cost of doing business. A recent survey found that 68% of U.S. CEOs have already increased prices or are considering it.

Although official government data hasn’t yet shown big jumps in inflation from these tariffs, most experts agree that consumers will eventually pay more for common goods.

In Summary:

• Many U.S. retailers are raising prices due to Trump’s tariffs.

• Goods affected include electronics, toys, groceries, clothing, and appliances.

• Some companies, like Home Depot, are avoiding price hikes by relying more on U.S. suppliers.

• More increases may be coming as retailers adjust to higher import duties.