The tariffs imposed by President Donald Trump are now starting to show their effects. People in America are now paying higher prices for some imported products. Several companies, including major ones like Adidas, Walmart, and Nike, have either raised their product prices or are about to. Experts believe that this is just the beginning, and prices might increase further.
Donald Trump's tariffs on goods from over 90 countries are impacting global brands, leading to higher prices, and the American brands are feeling the pinch as well. Both global and American brands are compelled to increase prices. There's a noticeable trend in the rising cost of items ranging from sports apparel to electronics and luxury goods.
According to Bloomberg, the fast-food chain Wendy's has seen a larger-than-expected decline of 3-5% in sales, rather than the initially forecasted 2%. This may lead them to raise prices on their menu items, including burgers.
Adidas has announced that the U.S. tariffs will increase their costs by approximately 200 million euros ($231 million) in the second half of the year, and they warned about possible price hikes in the U.S. Nike, potentially facing a tariff loss of $1 billion, has also declared plans to increase product rates.
Hermès has already increased prices
Luxury brand Hermès, known for its Birkin bags, has confirmed that it has already raised prices in the U.S. to offset the tariffs. Company official Eric du Halgouet stated, 'The price increases we are implementing are intended solely for the U.S., to compensate for the tariffs impacting the American market.'
Walmart hikes prices
Online shoppers also haven't escaped the impacts of these tariffs. Data from DataWeave shows that the average price of over 1,400 China-made products sold to U.S. buyers on Amazon increased by 2.6% from January to mid-June. CNBC reports that Walmart, the nation’s largest retailer, increased prices on some items by up to 51% between May and June.
Trump claims billions flowing into America
While prices in the U.S. rise, Trump considers the tariffs a victory, claiming that 'billions of dollars' are now flowing into the United States. He argues that this will boost domestic employment and manufacturing. However, he has warned that if India does not stop buying oil from Russia, tariffs on Indian goods could increase from 25% to 50% starting August 27, with 25% already in effect.
