Trump Tariffs: Will Walmart, Target and Nike Still Raise Prices in 2025?

The Walmart app seen with several apps on a phone screen

(Image credit: Getty Images)

A U.S. federal court blocked most of President Donald Trump’s sweeping global tariffs on Wednesday after ruling that the president’s actions were unconstitutional and an overstep of his legislative authority. Another court issued a similar ruling before an appeals court paused those injunctions.

The move comes after the Trump administration had slapped tariffs on nearly all products from most countries. As reported by Kiplinger, most duties were on pause for 90 days as of April 8, except for tariffs involving China.

The court decisions come as U.S. retail giants had already warned that consumers should brace for price hikes due to the economic uncertainty caused by Trump’s tumultuous trade policy. Wall Street has criticized Trump’s actions by using the term “TACO” trade — brief for “Trump Always Chickens Out” — as the president has often backed out of tariffs after causing market turmoil.

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The market uncertainty was a shared thread of concern by most major retailers in the U.S. this month.

President Donald Trump and Walmart recently went toe-to-toe over the impact of tariffs, as the major retailer said that it would need to raise prices to offset the newly imposed import tax on products.

The company also announced other cost-cutting measures, which include plans to reduce its workforce by about 1,500 positions, according to The Wall Street Journal.

Walmart, like other major retailers, had sought measures to offset cost increases from tariffs. For example, Walmart reportedly met with Chinese officials and requested suppliers to bear the brunt caused by tariffs. The request sparked legal concerns from China, and ultimately, the company has been forced to face tariffs head-on.

Note: Here’s how some of your favorite retailers planned to respond to tariff hikes before the courts began issuing rulings on Trump's tariff authority.

Walmart price hikes to stay low, for now

Walmart announced in May that it would be raising prices due to the impact Trump’s tariffs were having on some of its products, mainly those placed on China.

The announcement came as the United States and China had recently reached an agreement to roll back steep tariffs for 90 days. (The tariffs on China are temporarily blocked as of May 28, due to a federal court's decision.)

Still, Walmart CEO Doug McMillon said during a quarterly earnings call that the retail giant would be forced to adjust its prices.

“We will do our best to keep our prices as low as possible,” McMillon said. “But given the magnitude of tariffs, even at the reduced levels announced this week, we aren’t able to absorb all the pressure given the reality of narrow retail margins.”

Walmart indicated that its merchandise is imported from dozens of suppliers across the world. Large markets include China, Mexico, Vietnam, India, and Canada. China, in particular, is a major supplier of toys and electronics for Walmart.

As for food prices, Walmart maintained that it would keep prices low as long as it could.

However, tariffs on countries like Costa Rica, Peru, and Colombia had caused pressure on imported items like bananas, avocados, coffee, and roses.

“We’ll do our best to control what we can control in order to keep food prices as low as possible,” McMillon said.

Target: Prices going up would be ‘very last resort’

The outside of a Target store in Manhattan on a rainy day — Target announced that it would raise prices as a "very last resort" in response to Trump's tariffs on imported products.

As Walmart warned of price hikes and drew Trump’s public ire, other retailers like Target took a different approach.

Target’s CEO Brian Cornell warned of “massive potential costs” as a result of tariffs, however, he maintained that the company would raise its prices as a “very last resort.” Cornell also noted that Target had faced ongoing challenges, including declining consumer confidence and uncertainty regarding the impact of potential tariffs.

For now, the merchandising team has been working to mitigate the impact of tariffs, Target’s CEO said during the latest earnings call. The task’s difficulty level, however, has been “incredibly high” due to the magnitude of tariffs across all categories.

“As a company that aims to deliver great products and outstanding value, we’re focused on supporting American families as they manage their budgets,” said Cornell. “We have many levers to use in mitigating the impact of tariffs, and the price is the very last resort.”

Mattel warned of higher toy prices

Barbie packaging are seen in a store. (Photo by Jakub Porzycki/NurPhoto via Getty Images) — U.S. toymaker, Mattel, warned that prices of popular items would increase if Trump's steep tariffs on China remained. Mattel is known for producing Barbie and Hot Wheels.

President Trump acknowledged that his tariffs would increase the cost of toys sold in the U.S.

“Maybe the children will have two dolls instead of 30 dolls, you know?” Trump told reporters at the White House in May. “Maybe the two dolls will cost a couple of bucks more than they would normally.”

Mattel, the U.S. toy company and maker of Barbie and Hot Wheels, announced plans to increase prices on American toys due to the impact of tariffs on China in its latest earnings call.

Due to the uncertain macroeconomic environment and changes in global trade policy concerning U.S. tariffs, Mattel said it would take mitigating actions to offset the potential cost impact of tariffs. Some actions include:

Reducing reliance on Chinese-sourced products, and diversifying their supply chain
Optimizing product sourcing
Taking pricing action in its U.S. business, where necessary

In response, Trump mistook Mattel for a country and threatened 100% tariffs on its toys. The president further noted that Mattel “won’t sell one toy in the United States.”

Other U.S. toymakers warned customers of fewer toys and higher prices this year. Check out Kiplinger’s related article: How Tariffs Will Impact Clothing and Toy Prices in 2025

Nike price increase was announced for this week

Nike shoes and logo on display at a store.

Nike announced price hikes that would impact some of its apparel, footwear, and equipment in response to Trump's tariffs on global trading partners.

(Image credit: Jakub Porzycki/NurPhoto via Getty Images)

Nike said it would raise the price of its footwear, apparel, and other equipment as soon as this week. The retail giant known for its sneakers will also be returning to sell its products on Amazon.

Where will you see price hikes? Sources familiar with the matter said that Nike would increase prices on the following items.

Adult clothing and equipment prices may increase between $2 and $10
Footwear priced between $100 and $150 could see price hikes of $5
Shoes and sneaker valued over $150 may see a price hike of up to $10

Children’s items, however, would not be impacted by price adjustments. According to CNBC, Nike does not want to create financial strain on families during back-to-school. Other select products may not see price hikes, like Nike’s Air Force 1 shoes.

The pricing adjustment was not linked directly to Trump’s tariffs, but comes as other major retailers announced plans to increase costs due to the impact of new duties.

Nike manufactures its products in multiple countries, including China, Vietnam, and Indonesia. Its likely that the price increase is related to new tariffs placed on these countries. The price adjustment will be in effect June 1, 2025.

Home Depot tariffs impact would not raise prices

DeWalt products are displayed at a Home Depot on May 02, 2025 in New York City. Stanley Black &amp; Decker, the parent company of DeWalt and Craftsman, announced price increases across its tool lineup, citing expected supply chain disruptions and production costs linked to new tariffs imposed by the Trump administration. — DeWalt products are displayed at a Home Depot on May 02, 2025 in New York City. Stanley Black & Decker, the parent company of DeWalt and Craftsman, announced price increases across its tool lineup, citing expected supply chain disruptions and production costs linked to new tariffs imposed by the Trump administration.

In a surprising turn, Home Depot would not raise its prices on a broad scale due to Trump’s tariffs. That being said, some products will be eliminated because of the evolving trade policy.

“We won’t see broad-based price increases for our customers at all moving forward,” Home Depot executive Billy Bastek said during the latest earnings call. “There are items that we have that could potentially be impacted from a tariff that, candidly, we won’t have going forward.”

More than half of the products sold at Home Depot are sourced from the U.S., according to the company. The retail giant has been working with suppliers for years and diversifying its supply chain. Within a year, Home Depot expects to rely on no single country for more than 10% of its purchases.

“Because of our scale, the great partnerships we have with our suppliers and productivity that we continue to drive in our business, we intend to generally maintain our current pricing levels across our portfolio, Home Depot’s chief financial officer Richard McPhail told CNBC.

Tariffs blocked or not? What’s next

Two federal courts ruled that President Trump’s sweeping tariffs were illegal. Then, when the Trump administration appealed, a federal appeals court paused the injunctions from those courts.

What was happening? President Trump’s stance on tariffs had proven to be unpredictable, and major retailers across the country were bracing for impact.

While some companies decided to absorb the new tariff hikes on imported goods to maintain prices steady, others are warned of price increases that would have started as soon as this week.

As reported by Kiplinger, tariffs on imported goods are paid by domestic companies. In order to make a profit, these companies will generally pass along price hikes to consumers like you.

Stay tuned for more updates on how Trump’s tariffs could impact your shopping this year.

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Gabriella Cruz-Martínez is a finance journalist with 8 years of experience covering consumer debt, economic policy, and tax.

Gabriella’s work has also appeared in Yahoo Finance, Money Magazine, The Hyde Park Herald, and the Journal Gazette & Times-Courier.

As a reporter and journalist, she enjoys writing stories that empower people from diverse backgrounds about their finances, no matter their stage in life.