Consumers may be in for more price hikes in the near future, but this time, it’s not just due to inflation. A growing number of companies are warning customers to expect higher prices on a variety of products, and the main reason behind this is tariffs.
Despite President Donald Trump’s claims that consumers won’t feel the impact of tariffs, economists predict that costs will rise for both imported goods and U.S.-made items that rely on imported materials.
While there are conflicting messages coming from the White House, a survey by Ernst & Young revealed that 100% of executives plan to pass on some of the increased costs to consumers due to tariffs. The survey also found that prices on consumer goods are expected to rise by 2.9% in the short term, leading to an annual loss for households.
The Budget Lab at Yale University estimates that clothing and textiles will see some of the highest price hikes, with clothing prices potentially increasing by 64% in the short term. Additionally, the expiration of the “de minimis” exemption could further drive up prices for imported goods.
Companies are preparing to pass on some of the price increases
Major retailers like Microsoft, Stanley, Black and Decker, Adidas, Procter & Gamble, Shein, and Temu have already announced price hikes in response to tariffs. Other retailers such as Target, Columbia Sportswear, Best Buy, Mattel, and Autozone have also mentioned the possibility of raising prices.
Despite efforts by some retailers to mitigate price increases, consumers can expect to see higher prices on a wide range of products in the coming days and weeks.