Under the background of Trump’s tariff policy, from luxury goods to children’s toys, from retail giants to automobile manufacturers, more and more brands are quietly announcing price increases: Wal Mart, Lavlauren and Mattel collectively announced price increases in May, and the sports brand Nike was exposed to adjust prices from June 1. With the continued impact of Trump’s tariff policies, the US consumer market is facing an inevitable wave of price increases. From Wal Mart to Ralph Lauren, from toy manufacturer Mattel to automobile brand Volvo, to sports brand Nike and Adidas, many well-known enterprises have publicly announced or implied that they will increase product prices to cope with tariff pressure.
Despite the government’s insistence that tariff costs are borne by foreign countries, the reality for businesses is vastly different – supply chain pressures, rising costs for manufacturers, and tight inventory for retailers. The retail giant took the lead in making a statement: Wal Mart announced the price increase. According to Axios report on May 26, Wal Mart officially announced the expected price increase due to Trump’s tariff policy in mid May. CEO Doug McMillon admitted during the earnings conference call that considering the reality of the retail industry’s meager profit margins, we cannot fully absorb all the pressure. The company’s CFO John David Rainey revealed that consumers may see price increases as early as the end of May. This statement immediately triggered Trump’s angry response, and the President asked Wal Mart to “stop trying to use tariffs as an excuse to increase prices throughout the chain”. Finance Minister Besant also claimed on NBC that Wal Mart would actually “absorb part of the tariff costs”. Luxury brands and the toy industry are following suit. According to The Wall Street Journal, Ralph Lauren announced in May that it would raise prices more significantly than originally planned to offset the impact of tariffs.
The brand had originally planned to raise prices in the autumn, but now the price increase will further expand in the autumn and spring of the following year. Toy manufacturer Mattel has become a typical victim of tariff policies. According to Bloomberg, about 80% of toys sold in the United States are produced in China. Mattel announced in early May that it would raise prices for some products in the United States and suspend its full year financial guidance due to “fluctuations in the macroeconomic environment and evolving US tariff situation”. The automotive industry is under comprehensive pressure, and sports brands Nike and Adidas are raising prices. On May 23rd, Trump posted on Truth Social, proposing to impose a 50% tariff on EU imported goods from June 1st. Volvo CEO H å kan Samuelsson told Reuters that if implemented, customers will have to bear a significant portion of the increased costs related to tariffs.
Subaru of America announced in mid May that it will begin raising prices for multiple car models, stating that this is a response to the current market conditions. Ford has also raised the prices of three Mexican made models, and a spokesperson told CNN that this is a “regular mid year pricing adjustment combined with some tariffs we are facing”. Adidas CEO Bj ø rn Gulden stated in the first quarter performance statement that higher tariffs will “ultimately push up the cost of all products in the US market.” Nike was revealed to have adjusted prices starting from June 1st, although the tariffs were not explicitly mentioned, the timing coincides with a wave of price increases in the industry. According to reports, adult clothing has increased by $2-10, shoes priced between $100-150 have increased by $5, and shoes priced above $150 have increased by up to $10. Risk Warning and Disclaimer: There are risks in the market, and investment should be cautious.
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