New import tariffs, especially those targeting Chinese-made goods, are already impacting the wallets of American consumers. Everyday items like baby strollers, mattresses, power tools, and coolers have seen noticeable price increases. Despite a temporary reduction in some tariffs following trade talks, businesses are still grappling with added costs from universal 10% tariffs and up to 30% on Chinese imports.
The Federal Reserve estimates that these import taxes have caused a 0.3% rise in consumer prices this year alone. Companies are adjusting their strategies to survive—raising prices, cutting products, or passing costs to buyers.
Companies Shift Pricing Strategies to Cope
To manage rising expenses, businesses are adopting different approaches. Some are increasing prices across their entire catalog, while others are making more selective adjustments. A few are eliminating products altogether to avoid sticker shock for customers.
“Raise prices too much and you risk losing your customers,” said Z. John Zhang, a marketing professor at the University of Pennsylvania. “Your company’s future can depend on the pricing team’s decisions.”
To avoid backlash, some companies are avoiding direct mention of tariffs. Consultants advise them to discuss pricing in terms of value, demand, and supply rather than attributing increases to government policy.
Well-Known Brands Hike Prices
A number of major brands have already raised prices. Stanley Black & Decker increased prices in April across brands like Dewalt and Craftsman, and plans another hike later this year. Yeti raised prices on 14 products—coolers by 7%, drinkware by 11%, and pet bowls by 22%.
Avocado Green Mattresses increased prices on mattresses by 6% and on other products by 7.5%. Massage gun maker Therabody also announced a 15% price hike on some products.
Baby gear brand UPPAbaby raised prices on its strollers and car seats starting in May. “We tried to absorb the cost, but some increases were unavoidable,” the company explained on its website. Their products are made in China and have been directly impacted by tariffs.
Eliminating Products That Won’t Sell at Higher Prices
Some companies aren’t just raising prices—they’re removing items from their shelves altogether. Steve Rad, CEO of Abacus Brands, said pricing needs to be tailored product by product. “You can’t take something that’s $29.99 and raise it to $50 and expect it to sell,” he said.
His company originally planned to raise the price of its Pixicade toy due to a 145% tariff but decided against it when the tariff was reduced to 30%. However, other products like their $59.99 MasterChef cooking game were scrapped because increased costs would push the price to an unsellable $89.99.
Abacus is now cutting nearly half of its 85-product lineup. “We’re focusing only on our best-selling products,” said Rad.
Tariff Uncertainty Creates Long-Term Challenges
As long as trade tensions and tariffs remain in play, businesses will face ongoing challenges in setting prices. Most experts agree that once prices go up, they rarely come back down. While some companies are weathering the storm with strategic decisions, others may struggle to stay competitive.
For consumers, the result is clear: everyday purchases are becoming more expensive, and the trend may not slow down anytime soon.
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