Trump Tariffs Push Companies to Raise Prices

US Companies Warn of Price Hikes Amid Trump Tariffs

A majority of American companies say they will raise prices in response to Donald Trump’s sweeping tariff policy, according to a new international survey by insurer Allianz.

The report, which surveyed 4,500 companies across nine countries, found that 54% of U.S. businesses plan to increase prices to offset tariff-related costs. Only 22% said they could absorb the higher expenses without passing them on to consumers.

Despite President Trump pulling back on some levies, significant tariffs remain, including a 10% universal tariff on all imports, a 30% tariff on Chinese goods, and additional charges on key industries such as metals and auto parts. The resulting policy unpredictability has hit exporter confidence hard—42% of exporting firms now expect a turnover decline of 2% to 10% in the next year.

Walmart CEO Doug McMillon confirmed during a recent earnings call that the retailer would be forced to raise prices. “Even at the reduced levels announced this week, we aren’t able to absorb all the pressure,” McMillon said. “The higher tariffs will result in higher prices.”

Toymaker Mattel echoed the sentiment, with CEO Ynon Kreiz stating the company will maintain production abroad “where [it] can be more efficient and more productive.”

Ahead of the tariffs, 80% of American companies had already begun frontloading shipments to China, with 25% doing so even before the November 2024 election. Now, just 40% anticipate positive export growth—down sharply from 80% earlier this year.

Inflation data from April showed little change so far, but economists warn tariff-related price increases may only begin to surface in the coming months. Unless trade tensions ease, many companies say price hikes will become unavoidable this summer.