President Donald Trump announced his new “America First” trade agenda following his inauguration in January 2025.
This trade agenda outlined his plans to overhaul the US trade system, including a universal 10% tariff on all goods imported into the United States.
Tariff discussions and implementation have been volatile, but the impact has remained the same. Several sectors and retailers are feeling the pinch of increased import prices and are being forced to reevaluate their existing business models.
These businesses have been left with the choice of either absorbing the cost themselves or burdening their consumers by increasing retail prices. Today, we’ll examine the businesses that have made the latter choice.
1. Walmart
President Trump has notably stated that businesses should “eat the tariffs” instead of imposing them on consumers. However, this isn’t feasible for companies like Walmart, which have extensive global sourcing networks.
Walmart has warned that this tariff hike will force it to increase the price of its products, including toys, clothing, groceries, and electronics.
Walmart CFO John David Rainey said, “We can’t absorb all the pressure given narrow retail margins”. This isn’t great news for the average American, as most people live within a 10-mile radius of a Walmart and rely heavily on the retailer for everyday shopping.
2. Nike
Nike executives have anticipated that the tariff policy will cost the company approximately $1 billion. This is a massive amount for the sportswear giant to swallow since the majority of its athletic wear and footwear are manufactured in other countries.
Sportswear fanatics can expect an increase in the price of their athletic wear and footwear. However, Nike has plans to restructure its business model, and one idea is to move some of its manufacturing away from countries like China (with higher tariffs) and onto countries with lower tariffs.
3. Ford Motor Co.
The automotive industry is one of the hardest hit by the tariffs, with 25% duties slapped on imported vehicles and parts. This is a massive blow for Ford as three of their models are made in Mexico (which currently faces a 30% tariff).
As a result, car shoppers are expected to pay up to $2000 more for these models.
The motor-industry giant has invested around $10 billion in new North American facilities to eliminate tariffs and embrace an American-made approach.
4. Best Buy
Best Buy responded to the tariffs by increasing its prices in May 2025. The electronics retailer claimed that this was ‘the very last resort’ for them, but unfortunately, consumers can now expect to pay a little more during their next electronics upgrade.
The electronics giant has warned that vendors across its assortment will pass along some tariff costs.
This is an example of how these tariffs will ripple effect across businesses in the United States.
5. Mattel
Are toy prices going up, too? The short answer is yes. Mattel has confirmed that it will be selectively raising the prices of its toys in response to the tariffs. Around 40% of the toy giant’s products are produced in China, which could result in a higher price for items like Barbies and Hot Wheels.
Chief Executive Ynon Kreiz stated that around 40% of Mattel’s products will remain unchanged or in the $20 range.
This isn’t the best news for thrifty parents, as holidays and birthdays could become pricier.
6. Stanley Black & Decker
Stanley Black & Decker has confirmed a “high-single-digit price increase” for its Tools and outdoor products.
The leading manufacturer of industrial tools and hardware revealed that the 10% tariff hike will have an approximate $20 million impact on them. To mitigate these costs, the company plans to decrease its sourcing from China in favor of manufacturing in Mexico.
Homeowners, construction workers, and tool and hardware buyers can expect to start paying higher prices for their goods. However, Stanley Black & Decker plans to make major operational shifts to offset future price hikes.
7. Shein & Temu
These popular online shopping platforms will raise prices for American consumers. At one point, they flooded the US market with ultra-cheap goods, but that will change now due to President Trump’s high tariff policies for China.
In addition to these high tariffs, the de minimis loophole (which allowed parcels under $800 to enter duty-free) is no longer applicable.
While this might be good for local US retailers who Shein and Temu have outpriced, it also means frequent shoppers on these platforms will face much higher prices.
8. Procter & Gamble (P&G)
Procter & Gamble (P&G) owns several popular household goods brands, such as Tide, Pampers, Crest, and Charmin. In response to the tariff hike, they have announced a 1-2% increase on certain global brands.
P&G estimates it will face additional costs of $1 billion —$1.5 billion annually as it imports much of its packaging, materials, and finished products.
CFO Andre Schulten warned, “We will have to pull every lever in our arsenal to mitigate the impact of tariffs within our cost structure and P&L.”
9. Adidas
Adidas, which imports a massive amount of its inventory from China, expects the tariffs to significantly impact its bottom line.
However, due to uncertainty surrounding tariff policies, the company has not provided its financial projections and has yet to confirm specific times and dates for price hikes in its products.
CEO Bjørn Gulden stated: “Since we currently cannot produce almost any of our products in the U.S., these higher tariffs will eventually cause higher costs for all our products for the U.S. market.”
10. Christopher Ward
Luxury watch manufacturer Christopher Ward has openly stated that its US customers will have to absorb the full cost of the 31% tariffs the Trump Administration has imposed on Swiss watch imports.
The luxury watch brand has added tariff costs to its website’s checkout to maintain transparency.
CEO Mike France emailed customers: “As a relatively small, independent watch brand we can’t afford to absorb this increase … therefore, have no alternative but to pass the tariff costs onto our American customers.”
Conclusion
President Trump’s new tariff policies have significantly impacted businesses in the US and around the world.
The policy’s intentions are theoretically sound: it wants to promote employment, local manufacturing, and support local businesses.
However, the outcome isn’t as cut and dry. Many businesses are forced to restructure, make hard decisions, and deal with financial losses.
This unpredictable train has already left the station, and business owners and customers must brace themselves for the ride.