Retailers Raising Prices

Impact of Tariffs on Retailers

Consumers who hoped tariffs would not hit their wallets keep getting bad news. As they reported earnings in recent weeks, multiple major retailers said they have already raised some prices or plan to hike them in the coming weeks to offset the duties. They include major grocers and consumer goods sellers Costco, Best Buy, Walmart, and Target.

President Donald Trump’s ever-changing trade policy has roiled retailers as they try to plan their supply chains. On earnings calls, they faced the difficult task of trying to appease investors who want them to protect their bottom lines and shoppers who could balk at price hikes.

In some cases, companies have been explicit, citing the estimated toll tariffs will take on their bottom lines and breaking down which countries their supply chains rely on. Other retailers have been less forthcoming, avoiding the word "tariff" and instead blaming strategy shifts or price hikes on "macroeconomic uncertainty" — or simply refusing to point the finger at all.

Many retailers have reduced or withdrawn their full-year guidance because of tariffs. Companies such as Abercrombie & Fitch, Macy’s, and Best Buy have slashed their profit outlooks. Meanwhile, American Eagle, Canada Goose, Ross, and Mattel pulled their full-year guidance.

After Trump implemented steep tariffs on dozens of countries in April, his administration has temporarily cut them to lower — but still significant — levels. Imports from China face a 30% duty, while goods from many other nations are subject to a 10% duty. A federal trade court struck down many of those tariffs on Wednesday, only for an appeals court to reinstate them, adding to the uncertainty retailers face.

Economists on both sides of the aisle agree that tariffs are inflationary and the cost will likely be passed on to consumers, though government data has not showed a clear effect yet. A majority, 68%, of U.S. CEOs say they have either increased prices already or are considering doing so this year in the face of tariffs, according to a new survey by Chief Executive Group and AlixPartners.

Retailers’ Plans to Raise Prices

Here’s a breakdown of what several major retailers have said about their plans to raise prices as a way to mitigate the tariff impact.

Brands that have already raised some prices

Customers look over personal health items displayed at a Costco branch.
Executives of the warehouse club retailer told investors that tariffs have forced the company to tweak its supply chain and raise prices in some cases. Costco has absorbed tariff costs for some goods, while it has increased prices in other instances, said CFO Gary Millerchip.

Best Buy has already raised prices on some items to offset tariff costs, CEO Corie Barry said on a call with reporters. Changes took effect by mid-May. She declined to say which items are affected and called price hikes "the very last resort" for Best Buy.

On SharkNinja’s latest earnings call in May, CEO Mark Barrocas said the company has already increased prices for several of its key products in response to tariffs and will "continue to look for additional opportunities" to do so. As an example, he said the company recently raised the price of one of its Ninja espresso machines from $499 to $549 and saw "no degradation in demand."

Executives from Newell Brands, which owns stroller company Graco as well as Rubbermaid, Yankee Candle, Paper Mate and Sharpie, said during an April 30 earnings call that the company has raised prices on its baby gear by about 20%. The company said it is equipped to handle Trump’s tariffs, unless he raises duties on imports from China again, since the majority of baby gear sold in the U.S. is made in China.

Retailers that say they plan to increase prices

Walmart shoppers will likely see price increases toward the end of May and more in June because of tariffs, said Chief Financial Officer John David Rainey during an interview. Executives did not specify during the company’s most recent earnings call how much more Walmart c