U.S. Companies Planning to Raise Prices Due to Tariffs

Will American consumers be paying more for goods in the coming weeks and months as a result of the Trump administration's tariffs? A number of major companies have confirmed that they will need to raise prices in response to the "Liberation Day" tariffs that were recently instituted. Here is what you need to know about some of your favorite brands.

Why Many of Your Favorite Brands Are Increasing Prices

Walmart, Home Depot, Nike, and Adidas are just a few of the major American brands that said they will need to increase prices in order to keep up with the tariffs recently rolled out by President Donald Trump and his administration. Although companies can raise prices for a variety of reasons at any time, many industry leaders are blaming the price increases on the 10% baseline tariff on imports put in place by the White House on April 2. It was on this date that the White House announced that the sweeping tariffs would impact most countries across the world, resulting in what has now evolved into a global trade war.

It has been difficult to keep up with the trade news, as countries around the world work with Trump to negotiate potential deals with the U.S. With so much uncertainty on the global trading scene, many companies are looking to hike prices on their goods.

What Big Brand Industry Leaders Are Doing to Combat Tariffs

Home Depot is one company that noted that the ongoing tariffs are expected to impact pricing to just a small degree. William Bastek, the home improvement chain's executive vice president of merchandising, said during the August earnings call that the "modest price movement in some categories" will not be instituted broadly. This is because the bulk of the company's products are sourced in the U.S., meaning that they will dodge the impacts of the global tariffs.

Industry stalwart Procter & Gamble said that it is investigating raising prices on both its new and existing wide array of consumer goods. Earlier in the year, P&G's CFO Andre Schulten said that the company is looking to mitigate the impacts of the price hikes, but that they are likely to come shortly.

Walmart executives announced in May that price increases were likely on the way, putting the blame specifically on the trade war. CEO Doug McMillon told investors during the first quarter earnings call that the higher tariffs will inevitably lead to higher prices. McMillon said that while the retail giant is "wired for everyday low prices," the scope of the tariffs is more than they can absorb. This is being reflected in the trend of Walmart employees sharing pictures of recent price hikes.

Target CEO Brian Cornell expressed a similar sentiment as its competitor. Like Walmart, Target has already started to boost prices in response to the tariffs.

Conagra Brands CEO Sean Connolly listed a few specific ingredients that will be subject to price hikes as a result of the cost of tariffs on these goods coming into the U.S. These include ingredients such as olive oil, palm oil, and cocoa. In addition to the tariffs on some of these common imports, Conagra also imports tin plate steel from Mexico to use in its expansive line of canned goods.

Clothing and Sporting Goods Retailers Also Raising Prices

Several clothing and sporting goods retailers are also being forced to enact price hikes. Adidas confirmed that it will increase prices in the U.S. due to the hit from tariffs observed in the second quarter.

Following suit, Nike is also planning to raise prices in an attempt to offset an anticipated $1 billion in costs due to tariffs in the 2026 fiscal year. CFO Matthew Friend informed investors of the plan during a June earnings call. The athletic sportswear leader said that it will implement the price increases beginning this fall across the U.S, rolling them out in phases. Nike has not detailed which products will be the most impacted by the increase.

The future is looking bleak for traditional department stores such as Macy's. CEO Tony Spring said that the company is reducing its earnings outlook for 2025 due to a myriad of reasons, including higher-than-anticipated tariffs. The nationwide department store had previously announced that it would close approximately 150 underperforming retail stores by 2027, shifting its focus to its luxury brands.

Investors will now be looking toward outlooks for the upcoming holiday spending season to determine the scope of the impacts on the ongoing trade war.

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