These Companies Are Set to Increase Prices Due to Trump’s Tariffs

The Retail Giant Facing Trump’s Direct Criticism

Walmart found itself in the crosshairs of President Trump’s public wrath after announcing price increases due to tariffs. Walmart said on April 15 it would increase prices because Trump’s tariffs were “too high,” particularly when it came to products made in China. “We 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’t able to absorb all the pressure given the reality of narrow retail margins,” Walmart CEO Douglas McMillon said in an earnings call. Trump responded forcefully, posting on social media “Walmart made ‘BILLIONS OF DOLLARS last year, far more than expected.” After Walmart last week said it would have to jack up some prices because of high costs of the global trade war, Trump on Saturday responded forcefully in a Truth Social post, demanding Walmart reverse its decision. “Walmart should STOP trying to blame Tariffs as the reason for raising prices throughout the chain,” Trump said. “Between Walmart and China they should, as is said, ‘EAT THE TARIFFS,’ and not charge valued customers ANYTHING.” Despite the political pressure, price changes at Walmart will likely take effect by the end of May and prices will increase “much more” in June, the company’s chief financial officer John David Rainey, told CNBC.

Automakers Struggling with Rising Vehicle Costs

Ford’s CFO Sherry House said it expects to raise its US car prices as much as 1.5% in the second half of 2025 due to tariffs. The carmaker extended its “employee pricing” offer through July as consumers rushed to buy cars ahead of Trump’s tariffs. The situation became even more challenging when Ford Motor Co. pulled its 2025 guidance and said it expects a tariff hit of about $1.5 billion for the year as US automakers face economic uncertainty. Japanese automaker Subaru has also said it will increase US prices to “offset increased costs,” citing “current market conditions.” Subaru did not specify how much prices could increase. “The changes were made to offset increased costs while maintaining a solid value proposition for the customer,” a Subaru of America spokesperson said in a statement. Ford CEO Jim Farley warned investors, “Long term, a 25% tariff across the Mexico and Canadian border will blow a hole in the US industry that we have never seen.” Economist Arthur Laffer estimated car prices would increase by $4,711, compared to $2,765 if the USMCA exemption remained available.

Sporting Goods Giants Hit Hard by Vietnam Tariffs

Sportswear giant Adidas said that U.S. President Donald Trump’s tariffs would result in cost hikes for all its U.S. products. “Higher tariffs will eventually cause higher costs for all our products for the US market,” Adidas said in a statement. The impact is particularly severe because Nike makes about 50% of its footwear and 28% of its apparel in Vietnam, while rival Adidas relies on Vietnam for 39% of its footwear and 18% of its apparel. The Swiss athletic shoe and sportswear company On makes 90% of its shoes in Vietnam. Nike will raise prices on a wide range of footwear, apparel and equipment as soon as this week as the retail industry braces for tariffs to hit its profits. Prices for Nike apparel and equipment for adults will increase between $2 and $10, a person familiar with the matter said. Footwear priced between $100 and $150 will see a hike of $5, while sneakers priced above $150 will see a $10 increase, the person said. Retailers may not be able to fully offset these tariffs, as countering the impact of the levies on Vietnam alone would require price increases of 10% to 12%, according to UBS analysts.

Apple Faces Potential iPhone Price Explosion

Apple could see some of the most dramatic price increases of any company due to its heavy reliance on Chinese manufacturing. Most iPhones are still made in China, which was hit with a 54% tariff. If those levies persist, Apple has a tough choice: absorb the extra expense or pass it on to customers. Shares of the company closed down 9.3% on Thursday, hitting their worst day since March 2020. Apple still assembles 90% of its iPhones in China, largely through its partnership with Foxconn. China also handles 80% of iPads and over half of Mac computers, according to Evercore ISI. The price impact could be staggering: A more expensive iPhone 16 Pro Max, with a 6.9-inch display and 1 terabyte of storage, which currently retails at $1599, could cost nearly $2300 if a 43% increase were to pass to consumers. The iPhone 16 Pro Max 256 GB, which is among the devices that are assembled in China, retails for $1,199. Under the new tariffs on Chinese imports, the price of the device could rise by $675, or 56%, lifting the price tag to $1,874, an April 9 analysts from UBS Investment Research shows.

Chinese E-commerce Platforms Already Raising Prices

Both Shein and Temu released identical statements announcing plans to increase prices in response to Trump’s tariffs. “Due 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,” 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. The increases were even more dramatic on Shein, where CNN noted a bathing suit set cost $4.39. The next day, it cost $8.39, a 91% increase.

Toy Companies Under Presidential Pressure

On May 6, toy manufacturing giant Mattel said that it would raise prices due to tariffs. Chief Executive Ynon Kreiz told investors that “under the current scenarios we are considering” in response to tariffs, he expects 40% to 50% of its products to remain priced at $20 or less. This announcement triggered a swift response from President Trump, who threatened a 100% tariff specifically on Mattel’s products after the Barbie maker said it might have to raise prices on some U.S. toys because of tariffs. “We’ll put a 100% tariff on his toys, and he won’t sell one toy in the United States, and that’s their biggest market,” Trump said. Mattel CEO Ynon Kreiz said Trump’s tariffs won’t bring toy manufacturing to America, because toys couldn’t be manufactured in America and still be sold at affordable prices.

Electronics Retailers Bracing for Impact

Best Buy CEO Corie Barry told analysts to expect price increases as a result of higher tariffs. “Tariffs at this level will result in price increases,” Barry said on an earnings call in March, before Trump escalated tariffs a month later. “I think it is very difficult to say, given the backdrop that we’re in, exactly, precisely how big that is.” Best Buy relies on a global supply chain, Barry added, noting the company’s top two sources of goods are Mexico and China. Both of those countries continue to be targeted by Trump’s tariffs. The Trump administration last month issued a tariff exemption for China-made smartphones, computers, flat panel TV displays and other electronics. The list left out video game systems, meaning they would remain subject to 30% tariffs on Chinese goods.

Home Depot Takes a Different Approach

While most retailers are announcing price increases, Home Depot has taken a notably different stance. Home Depot doesn’t plan to raise prices broadly as a result of new tariffs, executives said on Tuesday, but some product options may disappear from store shelves if extra import costs make them not worth it. The home improvement chain broke from many other retailers, who say they cannot afford to absorb new tariffs. Since Trump imposed tariffs on Chinese products during his first term, Home Depot has pushed suppliers to diversify where they source items from. By mid-2026, the company expects to purchase no more than 10% of its products from any single foreign country. “We don’t see broad-based price increases for our customers at all going forward,” Billy Bastek, Home Depot’s executive vice president of merchandising, said Tuesday. “It’s a great opportunity for us to take share, and it’s a great opportunity for our suppliers to take share as well.” However, tariffs may cause Home Depot to increase prices on select items and eliminate some product lines entirely.

Food and Restaurant Industry Facing Widespread Impact

Food industry analyst Phil Lempert, also the editor of supermarketguru.com, estimates that with the latest tariffs “probably almost half of the products in a supermarket — about 40,000 products — will be affected by these tariffs, whether it’s the entire product or just an ingredient.” Food prices will rise 2.8% overall from Trump’s tariffs, including 4% for fresh produce, Yale University’s Budget Lab estimates. Restaurants are particularly vulnerable because restaurants already operate on some of the slimmest margins of any industry, typically 3 to 5 percent — and those margins are likely to shrink further as tariffs eat into the bottom line. Tom Madrecki, vice president of campaigns and special projects for the Consumer Brands Association, explained: “The issue is supply chains are incredibly tapped out, costs are high, ingredient costs are high, there is continued grocery inflation, and consumers are concerned. There is no margin on these products,” he said. And he added that unlike the trade war during Trump’s first term, at a time in the economy when inflation was much lower and costs could be absorbed, “This time there is nowhere to absorb it. Prices will have to increase.”

Small Businesses and Kitchen Companies Hit Hardest

Eunice Byun, who cofounded kitchen product company Material Kitchen seven years ago after a career at Goldman Sachs, sells her products online, and in retailers such as the Container Store, Bloomingdales and Saks. Material Kitchen’s knives are made in China, Korea, and India. “With the Trump tariffs we have had to increase prices for our steak knives (set of four) from $95 to $110,” said Byun. To mitigate the China tariffs, Byun was looking to move some production to Canada, but with the Trump trade war now brewing there has stopped that planning. Byun said the biggest cloud of uncertainty for her business is inventory management. Bruce Kaminstein, former owner and CEO of cleaning products company Casabella, and now an angel investor in consumer product companies, said tariffs can price companies like Bhargava’s out of business, which ultimately lowers consumer choice. “We will lose innovation and essentially the American Dream,” said Kaminstein.

Luxury Brands and European Imports

French luxury goods manufacturer Hermès raised prices for U.S. customers on May 1. The impact extends to many European luxury goods and specialty food items. Cheese imports from Italy, France, Spain and the Netherlands (all subject to 20% EU tariff), according to USDA, means Parmigiano-Reggiano, brie and Gouda could also see price rises. Olive oil, with top sources being the European Union (20%), particularly Spain, Italy and Greece, has already seen dramatic increases. “Olive oil prices have gone through the roof,” Lempert says. “They’re going to go even higher.” Even coffee and chocolate are not spared, with top sources including Vietnam (46%), Ivory Coast (21%), Brazil (10%), Thailand (36%), according to the World Bank, meaning cashews, pecans and macadamia nuts are likely to see the largest price increases.

The Broader Economic Reality

In 2025, Trump’s imposed and scheduled tariffs will increase federal tax revenues by $152.7 billion, or 0.49 percent of GDP, making the tariffs the largest tax hike since 1993. The tariffs amount to an average tax increase of nearly $1,200 per US household in 2025. An analysis by the nonpartisan Tax Foundation found that the tariffs now imposed on the three countries would amount to an average tax increase of $1,072 per U.S. household. President Trump’s sweeping global tariffs, effectively the highest in nearly a century, are expected to cost the average household more than $2,300 a year, according to the Yale Budget Lab. The reality is stark: companies across virtually every sector are either already raising prices or preparing to do so, with consumers ultimately bearing the cost of this historic trade war. What began as a policy to protect American industry has become a comprehensive price increase across the economy, affecting everything from morning coffee to evening entertainment, from basic necessities to luxury goods.

Did you expect this many companies to be forced into raising prices simultaneously?