- By Supratik Das
- Mon, 26 May 2025 04:51 PM (IST)
- Source:JND
American shoppers are feeling the pain of President Donald Trump's tariff policy, as a growing list of major US companies confirm price hikes on a wide range of everyday goods. From food to devices, living expenses are soon to soar as companies transfer the additional cost of imports to consumers. Trump's new trade policy, including a 10 per cent tariff on the majority of imports and 30 per cent on Chinese products, is now inducing consumer goods giants such as Procter & Gamble, Mattel, Sony, Adidas, and retail chains like Walmart and Best Buy, to unveil price hikes. Walmart, the world’s largest retailer, confirmed it will start selling products at higher prices as early as end-May, with larger hikes expected in June. “We will do our best to keep prices low, but the tariffs are too high for us to absorb,” said Walmart CEO Douglas McMillon, in a statement to CNN.
Prices of Daily Essentials Set To Rise
Procter & Gamble (P&G), maker of Pampers, Tide, and Charmin, has already indicated that the prices of baby diapers, detergents, and toilet paper will go up in the coming weeks. CEO Jon Moeller stressed that "tariffs inherently drive inflation," meaning price hikes are unavoidable. Similarly, Mattel, the manufacturer of Barbie and Hot Wheels, cautioned that 40-50 per cent of its toys will still be under 20 USD, but numerous others will become pricier. Trump had even floated a 100 per cent tariff on Mattel's toys, increasing pressure on the company's pricing scheme. Adidas and Nike also hinted at costlier products starting in June, driven by uncertainties in global trade and increased import duties. Similarly, electronics firms such as Sony and Nintendo are also adjusting product prices, particularly on accessories and game consoles, because of hikes in parts import costs.
Impact On India: Higher Costs And Lower Demand
The trickle-down effect of such tariffs would impact Indian consumers and exporters too. As US firms witness increasing costs, they might reduce imports from nations such as India or negotiate lower rates of purchases, compressing Indian manufacturers' margins. Furthermore, Indian consumers will likely undergo price hikes on US-implied imports like gadgets, branded apparel, and toys. The increase in the retail prices of US products could lower the demand for Indian-made products exported to the US, notably in the textile, auto components, and electronics industries. Even India’s IT and pharmaceutical exports, while not directly tariffed, could still face secondary pressure if overall US-India trade volume drops due to strained global supply chains.
As Trump's tariff policy unravels, the pinch is being felt more and more not only by companies but directly by the common American consumer. With prices of staples such as groceries, apparel, and domestic goods going up, America's consumer economy is heading into a phase of uncertainty and inflation, and even India isn't shielded from it.
