While his stance on the policy has fluctuated over the past months, Trump has nevertheless imposed several tariffs on products that enter the United States. A 10% tariff has been applied to nearly all imports, with a few notable exceptions. The largest tariffs have been imposed on China, which faces a 145% increase. As a result, the following companies are raising prices to pass the burden on to the consumer:
Best Buy
American consumer electronics retailer Best Buy might not have been an expected inclusion on this list. Tariffs are meant to benefit Americans, but another American company is forced to raise prices for American consumers. Best Buy and many other companies depend on the global supply chain. The company’s two main suppliers are located in China and Mexico, both of which have been impacted by Trump’s tariffs.
“Tariffs at this level will result in price increases,” Best Buy CEO Corie Barry said on an earnings call in March, before tariffs would escalate even further. “I think it is very difficult to say, given the backdrop that we’re in, exactly, precisely how big that is.”
AutoZone
Another American company, AutoZone CEO Philip Daniele, told analysts as far back as September that the company would increase prices in response to tariffs. When Trump announced a 25% tariff on the global auto industry—applying to vehicles and car parts alike—the company stuck to its plan.
“We will pass those tariff costs back to the consumer,” Daniele said on an earnings call.
Nintendo
Following the announcement of new tariffs this month, it was a welcome surprise that Nintendo announced its upcoming Switch 2 console would remain at the same price. However, the company was forced to make sacrifices elsewhere.
“Nintendo Switch 2 accessories will experience price adjustments from those announced on April 2 due to changes in market conditions,” the company said in a statement. “Other adjustments to the price of any Nintendo product are also possible in the future depending on market conditions.”
Shein and Temu
Whether fortunately or not, the China-based e-commerce companies Shein and Temu have been impacted by Trump’s tariffs. As a result, both companies are increasing their prices, and released identical statements to that effect.
“Due to recent changes in global trade rules and tariffs,” the two statements said, “our operating expenses have gone up. To keep offering the products you love without compromising on quality, we will be making price adjustments.”
Perhaps one of the most impactful changes that Trump’s administration made was the closing of the “de minimis” loophole. This loophole allowed for the import of goods valued at less than $800 without tariffs applied. It was this low-cost shipping method that likely accelerated the growth of online shopping from China.
The Impact of Tariffs
In addition to those noted above, tariffs are affecting companies ranging from French luxury goods manufacturers like Hermès to auto manufacturers like Ferrari. When these companies’ response is to raise prices on American consumers, it raises questions about how the United States’ economy will respond.
