From Walmart, Adidas To Shein, Temu, All Warn About Price Hikes As US Consumers Brace For Tariff Impact

With the baseline tariff set at 10 per cent for most nations and a steep 30 per cent levy on Chinese imports, the added cost burden is set to be passed on to US consumers, industry leaders warned.

Although Trump has urged retailers to absorb the additional expenses, companies are pushing back, indicating the hikes are too significant to internalise.

Source : Freepik

Major American and international companies, including Walmart, Adidas, and Best Buy, are preparing to raise prices on a wide array of goods as  President Donald Trump’s renewed tariff policy begins to impact import costs from China and other countries.

With the baseline tariff set at 10 per cent for most nations and a steep 30 per cent levy on Chinese imports, the added cost burden is set to be passed on to US consumers, industry leaders warned, reported Business Standard.

Although Trump has urged retailers to absorb the additional expenses, companies are pushing back, indicating the hikes are too significant to internalise. As reported by CNN, this could mean increased costs on a broad range of consumer goods—from clothing and groceries to electronics and automobiles.

Walmart, Adidas, and Ford Respond to Tariff Pressure

Retail giant Walmart revealed plans to adjust product pricing in response to the tariff hikes. “We will do our best to keep our prices as low as possible,” said CEO Douglas McMillon during an April 15 earnings call. “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.” According to CFO John David Rainey, prices are expected to start rising by late May, with a more pronounced jump expected in June.

Adidas, too, indicated a price surge may be inevitable. CEO Bjørn Gulden acknowledged that rising import duties are already affecting their cost structure. “Cost increases due to higher tariffs will eventually cause price increases,” he stated during an April 29 earnings call, adding that ongoing uncertainties around international trade negotiations only worsen the outlook.

The auto sector is not immune either. Ford's CFO Sherry House confirmed the company plans to raise vehicle prices in the US by 1.5 per cent in the second half of 2025. The company has also extended its “employee pricing” initiative through July as buyers rush to secure vehicles ahead of further hikes. Ford vehicles are now subject to a 25 per cent import tariff, which also covers most auto components, although temporary refund mechanisms are available to some manufacturers.

Shein, Temu, and Others Prepare for Tariff Fallout

Chinese retailers Shein and Temu, which previously avoided tariffs under the ‘de minimis’ rule exempting imports under $800, are no longer shielded. Trump’s recent executive order has removed this provision, prompting both companies to adjust prices. “Due to recent changes in global trade rules and tariffs, our operating expenses have gone up,” Temu announced, confirming that new pricing took effect on April 25, 2025. Similarly, Shein has already raised prices on some items, including a bathing suit that jumped from $4.39 to $8.39—a 91 per cent increase.

Electronics retailer Best Buy is also preparing for pricing changes. In its March earnings call, the company warned that “vendors across our entire assortment will pass along some level of tariff costs to retailers, making price increases for American consumers highly likely.”

Consumer goods firm Procter & Gamble, known for brands like Pampers and Tide, may also revise its pricing strategy. “There will likely be price increases for consumers because tariffs are inherently inflationary,” the CEO told CNBC during an April earnings update.

Toymaker Mattel echoed this sentiment, with CEO Ynon Kreiz telling investors the company is considering upward pricing adjustments to counterbalance the new tariffs.

Stanley Black & Decker, which produces power tools and hardware, has already increased prices by “high single digits” and signalled additional hikes later in the year.