Tariffs urge Walmart to raise prices in the coming weeks
Walmart says President Donald Trump’s tariffs and trade policies are quickly raising prices.
Nike is the latest retailer to announce prices hike amid rising import duties on President Donald Trump.
The footwear giant plans to increase the price of adult apparel and equipment from June 1st to $2 to $10.
The company says Nike footwear, between $100 and $150, is expected to rise by $5, while footwear above $150 is expected to rise by $10. Prices for children’s products, items under $100, or Nike Air Force 1 shoes, or Jordanian products will not increase.
“We regularly evaluate our business and adjust pricing as part of our seasonal plan,” Nike said in a statement to USA Today, which does not mention tariffs.
According to Reuters, fellow shoe and sportswear brands Adidas and Puma could follow along with price increases in the US.
Impending price increases are not limited to the footwear industry. Retailers such as Walmart and Best Buy have publicly announced imminent price increases in response to tariffs imposed by the Trump administration, including imports of China (formerly 145%).
Here’s what you need to know about price increases at various retailers, including Walmart and Amazon.
Adidas
In its first quarter revenue report in late April, Adidas CEO Bjørn Gulden confirmed that Trump’s tariffs will raise prices for all products in the US. The German footwear brand sources and manufactures products from several Asian countries, including China, Vietnam, Indonesia, India and Cambodia.
“As we can’t produce almost every product in the US right now, these higher tariffs will ultimately cause higher costs for all products aimed at the US market,” Gulden said in a statement.
Puma
Earlier this month, Pumas reportedly restricted the amount of goods shipped to the US from China, following taxes, earlier this month, according to Reuters.
Chief Financial Officer Markus Neubrand said German shoe companies will look closely at what their rivals will do about price increases before implementing them, Reuters reported.
“We don’t want to be a leader when it comes to changing pricing in the US market,” he said on May 8th.
Walmart
Despite exceeding first-quarter sales expectations, Walmart could quickly raise shopper prices due to increased tariffs imposed by the Trump administration, according to revenue calls.
Prices began to rise at the end of May, and certainly in June, Walmart’s chief financial officer, John David Rainey, said in an interview with CNBC.
Trump denounced the company on social media last weekend, accusing Walmart of unfairly denounced the expected price rise and ordered the world’s biggest retailer to “eat tariffs.”
In response, Walmart spokesman Joe Pennington told USA Today:
target
Target cut its annual sales forecast on May 21 after reporting a sharp decline in quarterly sales, resulting from a decline in consumer confidence and a pullback of discretionary spending due to Trump’s tariff war.
According to Reuters, Target executives did not say whether to raise prices due to tariffs when asked by reporters.
Best Buy
In his latest revenue report released in early March before Trump’s escalated tariffs took hold, Best Buy CEO Corie Barry predicted prices for US consumers would rise.
“Best Buy only imports directly from 2% to 3% of the overall assortment, but we expect vendors across our assortment to pass some tariff costs to retailers, and a rise in prices for American consumers said in a call on March 4th.
Best Buy’s next revenue call is set for next week, Thursday, May 29th.
Mattel
Mattel, the iconic Barbie manufacturer, said in its first quarter revenue report in early May that it plans to raise the prices of American toys in response to the administration’s new trade policy directly.
“The company operates in an uncertain macroeconomic environment with significant volatility, including global trade policy and changes in US tariffs,” the May 5 report said.
In addition to Barbie, Mattel’s most recognised franchise brands include Hot Wheels, Fisher Price, American Girl, Thomas & Friends, UNO, Masters of the Universe, Matchbox, Monster High, Mega and Poly Pocket. According to Chief Financial Officer Anthony Disilvestro, it is an international brand, but about half of Mattel’s business is in the US.
Amazon said it would not list customs fees next to the product
Amazon reported revenue and revenue exceeding its forecast for the first quarter on May 1st. But like other large retailers in recent weeks, the company has avoided providing guidance amidst tariff uncertainty.
Amazon CEO Andy Jassy said in an appeal with investors that, according to CNBC, it made it difficult to predict how Trump’s Amage-Off-Again tariffs would affect Amazon’s business. Amazon’s third-party seller-based “diversity” means that some merchants “will not intend to hand over all or their duties to their customers.”
On April 29, Amazon denied reports that the White House plans to include tariff charges on its main retail website, which led it to smash online retailers and call founder Jeff Bezos to its president.
“The team that runs the very low-cost Amazon Haul Store was thinking about listing import fees for a particular product,” Amazon spokesperson Rachael Lighty said in a statement to USA Today. “This will never be approved and we will not be going to happen.”
Home Depot that keeps prices stable
One of the retailers planning to stabilize prices is Home Depot, the company said on May 21.
“We generally intend to maintain our current pricing levels across our portfolio,” Chief Financial Officer Richard McFile told CNBC, adding that the majority of the company’s products come from the US.
However, the chain said tariffs could make some products unavailable, Reuters reported.
Contribution: Reuters, Mary Walrath Holdridge and Kathryn Palmer, USA Today
