After two months, here’s where tariffs have affected consumers most

Uncertainty reigns as reciprocal tariffs are now in the courts

By Mark Huffman of ConsumerAffairs

May 30, 2025

• Major retailers like Macys, Walmart, and Best Buy are raising prices on a range of goodsfrom toys and electronics to fresh producedue to increased import costs and supply chain disruptions caused by tariffs.

• The automotive, consumer packaged goods, apparel, and tech sectors are warning of higher prices, with companies like Ford, Procter & Gamble, Nike, and Microsoft citing tariffs as key drivers of cost inflation.

• A recent court ruling declared Trump’s tariffs unconstitutional, only to be swiftly stayed by an appeals court, leaving businesses and consumers in limbo amid ongoing legal battles.

There was more confusion about tariffs this week after the U.S. Court of International Trade ruled that President Donald Trump exceeded his authority by implementing broad tariffs without Congressional approval. But within hours, a federal appeals court blocked that ruling from taking effect until the full court could consider the issue.

Meanwhile, the tariffs are having an impact on consumers and the businesses that serve them. The latest developments include:

• Macys: Announced selective price hikes due to increased import costs, particularly affecting products sourced from China.

• Walmart: Warned of price increases on items like bananas and electronics, citing the inability to absorb the full impact of tariffs.

• Target: Indicated potential price hikes on imported fruits and vegetables, given the company’s reliance on Mexican produce.

• Best Buy: Anticipated price increases across various products as vendors pass on tariff-related costs.

• Mattel: Plans to raise toy prices in the U.S. to offset higher production costs resulting from tariffs.

• Shein and Temu: Fast-fashion retailers facing significant cost increases due to the removal of the de minimis exemption, leading to higher prices for consumers.

Automotive Industry

• Ford: Announced plans to increase vehicle prices by up to 1.5% in response to tariffs on imported cars and parts.

• General Motors: Revised its financial forecasts, anticipating a $5 billion impact from tariffs, which may lead to higher vehicle prices.

• Volkswagen and Subaru: Both automakers have indicated that tariffs will necessitate price adjustments on their vehicles sold in the U.S.

Consumer packaged goods

• Procter & Gamble: Lowered its sales growth projections, citing challenges from tariffs and the need to adjust pricing on products like Tide and Charmin.

• PepsiCo: Reduced its earnings forecast due to increased supply chain costs from tariffs, leading to a 3% rise in product prices.

Apparel and Footwear

• Nike and Adidas: Both companies have announced upcoming price increases on footwear and apparel to counteract the financial impact of tariffs.

• Ralph Lauren: Plans to raise prices more than previously anticipated, attributing the decision to the increased costs from tariffs.

Food and beverage

• Imported Produce: Tariffs on Mexican imports are expected to raise prices on fruits and vegetables, affecting retailers and consumers alike.

• Coffee and Wine: Tariffs on imports are projected to increase costs for these beverages, with potential price hikes for consumers.

Electronics and Technology

• Microsoft: Warned of potential price increases on products due to tariffs affecting components and manufacturing costs.

• Nintendo: Delayed the pre-order date for its Switch 2 console, citing concerns over tariffs and their impact on pricing.

However, data released by the government Friday show these price increases have yet to raise the inflation rate, perhaps because consumers are being more choosy about that they buy.

The Commerce Department’spersonal consumption expenditures price index rise just 0.1% in April as the tariffs went into effect.

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