Tariff Impact: Walmart, Ford, Mattel Set to Raise Prices in 2025

A growing list of major U.S. companies is warning that prices on everyday items—from toys and tools to cars and clothing—are set to rise in the coming months, citing increased costs tied to President Donald Trump’s latest round of tariffs.

The administration’s trade agenda has reintroduced a 10% baseline tariff on most imports and a 30% levy on Chinese goods, with certain categories like steel and aluminum seeing even higher duties. Businesses across industries say the financial burden is too large to absorb, leaving them little choice but to pass those costs on to American consumers.

Walmart was one of the first retail giants to respond. In its April earnings call, the company announced it would begin raising prices by late May, with steeper hikes expected in June. CEO Doug McMillon explained that even the revised tariff rates are too much for the company to handle given its narrow profit margins. “We’ll do our best to keep prices low,” McMillon said, “but the pressure is real.”

Other retailers and manufacturers are making similar moves. Best Buy has flagged likely price increases as its suppliers adjust prices to cope with tariff-related cost spikes. Mattel, the global toy brand, told investors it expects as much as half of its product line to remain under $20—but only under current scenarios. CEO Ynon Kreiz emphasized the company’s support for zero tariffs on toys globally, calling them vital to affordability.

The impact is also rippling through the electronics and gaming industries. Nintendo delayed the rollout of its next-gen Switch console due to trade uncertainty, and while the device’s $450 price tag remains unchanged for now, the company confirmed it is adjusting prices on accessories. Sony’s PlayStation division has also left the door open to retail increases, with executives acknowledging they “may pass on the price.”

E-commerce platforms Shein and Temu—known for their ultra-low prices—have also been affected. A key exemption they once relied on, known as the “de minimis” rule, previously allowed them to avoid tariffs on imports valued under $800. But a new executive order has eliminated that benefit. Both companies have already implemented noticeable price hikes: a $61 patio chair on Temu jumped to $70 in one day, and a Shein swimsuit set nearly doubled in price overnight.

The auto industry isn’t spared either. A 25% tariff on imported cars and related parts is now in effect. Ford announced it plans to raise vehicle prices in the U.S. by up to 1.5% in the second half of 2025. The company has also extended special pricing programs to encourage customers to buy before costs climb. Japanese automaker Subaru also confirmed price increases to “offset increased costs,” though it declined to say by how much.

Even household essentials are set to become more expensive. Procter & Gamble, which produces widely used brands like Tide, Pampers, and Gillette, is reviewing its pricing strategy. “Tariffs are inherently inflationary,” CEO Jon Moeller said, noting that consumers should expect some categories to reflect that soon.

Meanwhile, Stanley Black & Decker, maker of popular power tools, has already raised prices by high single digits and announced more increases later this year. Adidas, the athletic wear giant, also issued a warning. CEO Bjørn Gulden told investors that the uncertainty around tariffs could lead to higher prices for U.S. consumers, depending on how trade negotiations evolve.

Companies across industries are starting to raise prices as President Trump’s latest tariffs begin to take effect. Retailers like Walmart, automakers like Ford and Subaru, and manufacturers such as Mattel have all confirmed they’ll be passing some of the added costs on to consumers. With import taxes as high as 30% on many goods from China, and even steeper rates on materials like steel and aluminum, executives say holding prices steady is no longer sustainable. While some businesses are offering short-term promotions to delay the impact, most admit that everyday items — from clothing and toys to electronics and vehicles — are set to cost more in the months ahead.

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