Increase in Costs Imminent for 7 Leading Companies
In the wake of tariffs imposed during 2025, several brands have announced price increases to offset the financial impact.
German sportswear giant Adidas plans to raise prices in the U.S. due to a significant tariff-related cost hit. The company predicts a $218 million cost from levies in the second half of the year, with tariffs affecting production in Vietnam (20%) and Indonesia (19%) driving this decision.
Stanley Black & Decker, known for its tools and home appliances, has already implemented price hikes as a result of tariffs. The company expects an annualized impact of $800 million from policy changes tied to tariffs.
Walmart's CEO has indicated that higher tariffs would result in higher prices, suggesting the retailer will raise prices in response.
Other manufacturers are increasingly evaluating and beginning to raise prices due to the tariff environment. However, some retailers like Home Depot and Costco have stated plans not to increase consumer prices despite tariff levies, at least for certain staples.
The restaurant industry signals potential price increases as tariffs on imports from key food suppliers (Canada, Brazil, EU) raise costs. While evaluations are ongoing, the industry could see price hikes in the coming months.
Major automakers like General Motors and Ford expect significant tariff-related financial impacts, which could indirectly influence pricing strategies. However, explicit price hike announcements have not been made by these companies.
In contrast, Hershey states that the price adjustments are not related to tariffs or trade policies. Instead, the price of cocoa, which has surged more than 165% over the last two years, is causing the increases.
Procter & Gamble is increasing prices on approximately 25% of its products, with an average increase of 2.5%. The price increases are due to higher raw-material and supply-chain costs, investments in product innovation, and the impact of recently announced tariffs.
Mondelēz, the snacking giant behind brands such as Oreo and Ritz, will implement incremental pricing. However, the company states that the tariffs are not the primary reason for the price hikes, with the rising price of raw materials, especially cocoa, being the main factor.
Conagra Brands, the parent company of Marie Callender's and Slim Jim, expects tariffs to raise costs of goods sold by 3%, resulting in an annual increase of over $200 million.
In summary, brands publicly announcing price increases due to tariffs include Adidas, Stanley Black & Decker, and Walmart, with other sectors like manufacturing and restaurants also anticipating or implementing price hikes in 2025. However, some retailers have stated plans not to increase consumer prices, and evaluations are ongoing in the restaurant industry and among automakers.
The finance sector might experience fluctuations due to the potential increase in prices across various industries. For instance, Adidas, Stanley Black & Decker, and Walmart have announced price increases in response to tariffs, which could impact their respective business operations.
