Adidas, Shein, Walmart to hike product prices in US after Trump's tariffs

Some retailers in the US have cautioned that they won't, as Trump suggested, eat the additional costs caused by the increased import taxes

US retail giants Walmart, Adidas, and Best Buy are among the companies that are set to increase their product prices, as US President Donald Trump’s baseline tariffs on Chinese imports continue to pressure US import costs.

 

However, many US retailers have cautioned that they won't, as Trump suggested, “eat” the additional costs from import taxes, implying that anything from groceries and clothing to toys and cars could cost Americans more, CNN reported.

 

Donald Trump has announced sweeping tariffs on imports from over 100 countries, including China. Most countries will face a baseline tariff of 10 per cent, while Chinese goods entering the US will be subject to a significantly higher 30 per cent tariff. Consequently, retailers in the US have indicated that product prices of goods are likely to go up soon, owing to Trump’s “high” tariffs.

 

 

 

Here are the companies that are likely to raise the prices:

 

1. Walmart

 

On April 15, the hypermarket chain operator announced that it would increase prices of goods, owing to tariffs imposed by Donald Trump. Calling the new tariffs “too high”, Walmart CEO Douglas McMillon in an earnings call said, “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.”

 

The price changes at Walmart are expected to take place at the end of May, and prices will increase "much more" in June, CNBC reported, citing the company’s chief financial officer, John David Rainey.

 

2. Adidas

 

Sportswear manufacturer Adidas is also likely to increase the price of its goods. In an earnings call on April 29, chief executive of the company Bjørn Gulden said, “Given the uncertainty around the negotiations between the US and the different exporting countries, we do not know what the final tariffs will be.” He further mentioned, “cost increases due to higher tariffs will eventually cause price increases.”

 

Pointing at Trump’s tariffs for the increased costs, the company noted that these higher costs in the US are due to Trump’s back-and-forth tariffs.

 

 

3. Ford

 

Ford's Chief Financial Officer (CFO) Sherry House stated that the company expects to raise the US car prices by 1.5 per cent in the second half of 2025, owing to tariffs. Ford also extended its “employee pricing” offer through July as consumers rushed to buy cars ahead of Trump’s tariffs.

 

Imported cars have been hit with a 25 per cent tariff, and most auto parts face a similar duty, although some automakers can request partial refunds, for now.

 

 

 

4. Subaru

 

Japanese automaker Subaru is also set to increase the prices of cars in the US to offset increased costs, citing “current market conditions”. The automaker, however, did not specify how much price increase one can anticipate.

 

According to a statement from a US spokesperson of the company, “The changes were made to offset increased costs while maintaining a solid value proposition for the customer.” 

 

5. Shein and Temu

 

Chinese retailers like Shein and Temu were once exempted from tariffs owing to the ‘de minimis’ exception rule, under which shipments of goods less than $800 were spared from taxes. However, Trump signed an executive order recently to get rid of this exemption.

 

In a recent statement, Temu mentioned, “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 a price adjustment starting April 25, 2025.”

 

Temu’s note was similar to an announcement made by Shein. The two Chinese retailers have already increased prices of certain products. For instance, a bathing suit on Shein that earlier cost $4.39, is now priced at $8.39, indicating a 91 per cent increase.

 

 

6. Best Buy

 

Best Buy, an electronics retailer, warned of a price hike in its March earnings call, mentioning “vendors across our entire assortment will pass along some level of tariff costs to retailers, making price increases for American consumers highly likely.”

 

7. Procter & Gamble

 

Procter & Gamble (P&G), the household product maker, in an earnings call in April, said that it would consider raising prices in some categories and markets.

 

P&G's CEO, which owns brands like Pampers, Tide, and Charmin, told CNBC, “There will likely be price increases for consumers because tariffs are inherently inflationary.”

 

8. Mattel

 

Toy manufacturing giant Mattel also announced that it would increase the prices due to high tariffs. Chief Executive Ynon Kreiz told investors that they are considering increasing the price due to tariffs imposed by Trump.

 

9. Stanley Black & Decker

 

Power tool brand owner Stanley Black & Decker, in April, announced raising prices by an average of high single digits due to tariffs imposed. The company further announced that another round of price increases is set to come later this year.