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Companies preparing to raise prices because of Trump鈥檚 tariffs

Companies preparing to raise prices because of Trump鈥檚 tariffs
This is *** mixed report. After falling in last month's data, we know that inflation went up 0.2% year over year it's up 2.3%, which is about where it was last month. According to the Bureau of Labor Statistics, rising rent, natural gas, and electricity offset decreases in gas, groceries, used vehicles, and clothing. Prices across the board are in limbo as consumers. To feel the full impact of President Trump's tariffs. And while the Trump administration works out *** trade deal with China, agreeing to *** 90 day truce, many companies are likely using that time to stockpile on goods, bringing in an influx of trade and buying, but minimal relief when it comes to inflation. It takes so long for orders to be placed to be put on *** ship to make it across the ocean. Uh, and then to make it to their destinations in the United States. It takes *** long time to plan for those things. 90 days, uh, of uncertainty about what will happen next is not *** lot of confidence for, uh, importers. And the economists who we spoke with say that tariffs impact more than just prices. In the short term, he says it could prevent many companies from hiring more and broadening their operations. In Washington, I'm Amy Lo.
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Updated: 5:41 AM CDT May 25, 2025
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Companies preparing to raise prices because of Trump鈥檚 tariffs
CNN logo
Updated: 5:41 AM CDT May 25, 2025
Editorial Standards 鈸�
President Donald Trump鈥檚 sweeping tariffs have given many Americans whiplash. The list of companies announcing price changes as a result is equally daunting.Related video above: Inflation ticks up slightly in April as tariffs kick inAmong the levies Trump has imposed is a 10% baseline tariff for most imports and a 30% tariff on most Chinese goods. Some goods, such as steel and aluminum, face higher rates.Many retailers have issued warnings that they will not, as Trump has suggested, 鈥渆at鈥� the additional costs caused by those import taxes. That means anything from groceries and clothing to toys and cars could cost Americans more.Walmart is one of the latest major retailers to say it would sell more expensive goods soon because Trump鈥檚 tariffs are 鈥渢oo high.鈥� Other retailers suggesting they could hike prices soon include Ford, Best Buy and others.Here are some of the companies that could raise prices on everyday items, whether or not the companies are directly blaming Trump鈥檚 tariffs.WalmartWalmart said on April 15 it would increase prices because Trump鈥檚 tariffs were 鈥渢oo high,鈥� particularly when it came to products made in China.鈥淲e will do our best to keep our prices as low as possible. But given the magnitude of the tariffs, even at the reduced levels announced this week, we aren鈥檛 able to absorb all the pressure given the reality of narrow retail margins,鈥� Walmart CEO Douglas McMillon said in an earnings call.Price changes at Walmart will likely take effect by the end of May and prices will increase 鈥渕uch more鈥� in June, the company鈥檚 chief financial officer, John David Rainey, told CNBC.MattelOn May 6, toy manufacturing giant Mattel said that it would raise prices due to tariffs. Chief Executive Ynon Kreiz told investors that 鈥渦nder the current scenarios we are considering鈥� in response to tariffs, he expects 40% to 50% of its products to remain priced at $20 or less. However, he also advocated for zero tariffs on toys and games around the world.Trump threatened Mattel, saying he would 鈥減ut a 100% tariff on his toys, and he won鈥檛 sell one toy in the United States, and that鈥檚 their biggest market.鈥滲est BuyElectronics retailer Best Buy warned during a March earnings call that 鈥渧endors across our entire assortment will pass along some level of tariff costs to retailers, making price increases for American consumers highly likely.鈥漇ome electronic components and devices are temporarily exempt from Trump鈥檚 tariffs. That will not last forever.Nintendo, for instance, delayed the preorder date for its Switch 2 video game console because of concerns regarding tariffs. The company later said pricing for the console will not change from the initial $450, but the accessories 鈥渨ill experience price adjustments from those announced on April 2 due to changes in market conditions.鈥� The same could happen to any product because of 鈥渕arket conditions,鈥� the company noted.Meanwhile, Lin Tao, CFO of PlayStation maker Sony, said 鈥渨e may pass on the price鈥� during an earnings call.Shein and TemuChinese retailers Shein and Temu were once largely exempt from tariffs because of the 鈥渄e minimis鈥� exemption, which spared shipments of goods worth less than $800. But Trump signed an executive order getting rid of the exemption.鈥淒ue to recent changes in global trade rules and tariffs, our operating expenses have gone up. To keep offering the products you love without compromising on quality, we will be making price adjustment starting April 25, 2025,鈥� Temu wrote in a notice similar to an announcement Shein made.Both companies have since raised prices on some products. For instance, two patio chairs listed on Temu and reviewed by CNN had a $61.72 price tag on April 24. The next day, when the pricing changes took effect, they were listed at $70.17. On Shein, CNN noted that a bathing suit set cost $4.39. The next day, it cost $8.39, a 91% increase.Ford and SubaruImported cars were hit with a 25% tariff, and most auto parts face a similar duty, although some automakers can request partial refunds 鈥� for now.Ford鈥檚 CFO Sherry House said it expects to raise its U.S. car prices by as much as 1.5% in the second half of 2025 due to tariffs.The carmaker extended its 鈥渆mployee pricing鈥� offer through July as consumers rushed to buy cars ahead of Trump鈥檚 tariffs.Japanese automaker Subaru has also said it will increase U.S. prices to 鈥渙ffset increased costs,鈥� citing 鈥渃urrent market conditions.鈥� Subaru did not specify how much prices could increase.鈥淭he changes were made to offset increased costs while maintaining a solid value proposition for the customer,鈥� a Subaru of America spokesperson said in a statement. 鈥淪ubaru pricing is not based on the country of origin of its products.鈥漃rocter & Gamble, Stanley Black & DeckerHousehold product maker Procter & Gamble, which owns brands like Pampers, Tide and Charmin, said during an earnings call on April 24 that it would consider raising prices in some categories and markets.That same day, CEO Jon Moeller told CNBC that 鈥渢here will likely鈥� be price increases for consumers because 鈥渢ariffs are inherently inflationary.鈥滻n April, Stanley Black & Decker, which owns power tool brands, raised prices by an average of high single digits because of tariffs. Another round of price increases will come later this year.AdidasAdidas said higher costs are likely for products in the U.S. due to Trump鈥檚 back-and-forth tariffs.鈥淕iven the uncertainty around the negotiations between the U.S. and the different exporting countries, we do not know what the final tariffs will be,鈥� Adidas CEO Bjorn Gulden said in an earnings release on April 29.He added that 鈥渃ost increases due to higher tariffs will eventually cause price increases.鈥�

President Donald Trump鈥檚 sweeping tariffs have given many Americans whiplash. The list of companies announcing price changes as a result is equally daunting.

Related video above: Inflation ticks up slightly in April as tariffs kick in

Advertisement

Among the levies Trump has imposed is a 10% baseline tariff for most imports and a 30% tariff on most Chinese goods. Some goods, such as steel and aluminum, face higher rates.

Many retailers have issued warnings that they will not, 鈥渆at鈥� the additional costs caused by those import taxes. That means anything from groceries and clothing to toys and cars could cost Americans more.

Walmart is one of the latest major retailers to say it would sell more expensive goods soon because Trump鈥檚 tariffs are 鈥渢oo high.鈥� Other retailers suggesting they could hike prices soon include Ford, Best Buy and others.

Here are some of the companies that could raise prices on everyday items, whether or not the companies are directly blaming Trump鈥檚 tariffs.

Walmart

Walmart said on April 15 it would increase prices because Trump鈥檚 tariffs were 鈥渢oo high,鈥� particularly when it came to products made in China.

鈥淲e will do our best to keep our prices as low as possible. But given the magnitude of the tariffs, even at the reduced levels announced this week, we aren鈥檛 able to absorb all the pressure given the reality of narrow retail margins,鈥� Walmart CEO Douglas McMillon said in an earnings call.

Price changes at Walmart will likely take effect by the end of May and prices will increase 鈥渕uch more鈥� in June, the company鈥檚 chief financial officer, John David Rainey, told .

Mattel

On May 6, toy manufacturing giant Mattel said that it would raise prices due to tariffs. Chief Executive Ynon Kreiz told investors that 鈥渦nder the current scenarios we are considering鈥� in response to tariffs, he expects 40% to 50% of its products to remain priced at $20 or less. However, he also advocated for zero tariffs on toys and games around the world.

Trump threatened Mattel, saying he would 鈥減ut a 100% tariff on his toys, and he won鈥檛 sell one toy in the United States, and that鈥檚 their biggest market.鈥�

Best Buy

Electronics retailer Best Buy warned during a March earnings call that 鈥渧endors across our entire assortment will pass along some level of tariff costs to retailers, making price increases for American consumers highly likely.鈥�

Some electronic components and devices are temporarily exempt from Trump鈥檚 tariffs. That will not last forever.

Nintendo, for instance, delayed the preorder date for its Switch 2 video game console because of concerns regarding tariffs. The company later pricing for the console will not change from the initial $450, but the accessories 鈥渨ill experience price adjustments from those announced on April 2 due to changes in market conditions.鈥� The same could happen to any product because of 鈥渕arket conditions,鈥� the company noted.

Meanwhile, Lin Tao, CFO of PlayStation maker Sony, said 鈥渨e may pass on the price鈥� during an earnings call.

Shein and Temu

Chinese retailers Shein and Temu were once largely exempt from tariffs because of the 鈥渄e minimis鈥� exemption, which spared shipments of goods worth less than $800. But Trump signed an executive order getting rid of the exemption.

鈥淒ue to recent changes in global trade rules and tariffs, our operating expenses have gone up. To keep offering the products you love without compromising on quality, we will be making price adjustment starting April 25, 2025,鈥� Temu wrote in a notice similar to an announcement Shein made.

Both companies have since raised prices on some products. For instance, listed on Temu and reviewed by CNN had a $61.72 price tag on April 24. The next day, when the pricing changes took effect, they were listed at $70.17. On Shein, CNN noted that a cost $4.39. The next day, it cost $8.39, a 91% increase.

Ford and Subaru

Imported cars were hit with a 25% tariff, and most auto parts face a similar duty, although some automakers can request partial refunds 鈥� for now.

Ford鈥檚 CFO Sherry House said it expects to raise its U.S. car prices by as much as 1.5% in the second half of 2025 due to tariffs.

The carmaker extended its 鈥渆mployee pricing鈥� offer through July as consumers rushed to buy cars ahead of Trump鈥檚 tariffs.

Japanese automaker Subaru has also said it will increase U.S. prices to 鈥渙ffset increased costs,鈥� citing 鈥渃urrent market conditions.鈥� Subaru did not specify how much prices could increase.

鈥淭he changes were made to offset increased costs while maintaining a solid value proposition for the customer,鈥� a Subaru of America spokesperson said in a statement. 鈥淪ubaru pricing is not based on the country of origin of its products.鈥�

Procter & Gamble, Stanley Black & Decker

Household product maker Procter & Gamble, which owns brands like Pampers, Tide and Charmin, said during an earnings call on April 24 that it would consider raising prices in some categories and markets.

That same day, CEO Jon Moeller told CNBC that 鈥渢here will likely鈥� be price increases for consumers because 鈥渢ariffs are inherently inflationary.鈥�

In April, Stanley Black & Decker, which owns power tool brands, by an average of high single digits because of tariffs. Another round of price increases will come later this year.

Adidas

Adidas said higher costs are likely for products in the U.S. due to Trump鈥檚 back-and-forth tariffs.

鈥淕iven the uncertainty around the negotiations between the U.S. and the different exporting countries, we do not know what the final tariffs will be,鈥� Adidas CEO Bjorn Gulden said in an earnings release on April 29.

He added that 鈥渃ost increases due to higher tariffs will eventually cause price increases.鈥�