It’s been roughly two months since the Trump administration's tariffs took effect, and businesses are buckling under the pressure. To refresh: There is currently a 25 percent tariff on aluminum, a 30 percent tariff on Chinese imports, and a 10 percent universal baseline tariff, according to NBC News. Though many retailers have delayed price hikes, stores like Macy’s and Best Buy and popular brands like e.l.f. Cosmetics are warning shoppers that the inevitable is coming. Here’s what some of the country’s biggest retailers have said about impending price hikes.
RELATED: Walmart Warns Shoppers It's Raising Prices on These 4 Groceries Due to Tariffs.
1. Macy's
The Macy's You Know and Love Is "Melting Away," Insider Admits—Here's What That MeansShutterstock
About 20 percent of Macy’s inventory is sourced from China, company CEO Tony Springs revealed in an interview with CNBC. Since COVID-19, Macy’s has reduced its portfolio of China-based private brands from more than 50 percent to 27 percent. But even still, that’s not enough to counteract the effects of inflation and tariffs.
"You’re dealing with it on both the demand side as well as the increased cost side," said Springs. "And so navigating that, we have a series of different scenarios to try to figure out kind of what will be the reality, and we want our guidance to reflect the flexibility of that uncertainty, so that we can react in real time to how we serve or better serve the consumer."
As for which items will go up in price, Spring said it’s "not a one-size-fits-all kind of approach." Instead, Macy’s is going the "surgical" route.
"There are going to be items that are the same price as they were a year ago. There is going to be, selectively, items that may be more expensive, and there are items that we might not carry because the pricing doesn’t merit the quality or the perceived value by the consumer," he explained.
In Feb. 2024, it was reported that Macy’s would be shuttering 150 underperforming locations.2. Gap
9 | Gap and Banana RepublicShutterstockGap is putting up a strong fight. Net sales hit $3.5 billion, a two percent increase from the year prior, according to a first-quarter fiscal 2025 report. Comparable sales also increased two percent year-over-year, and online sales are up six percent.
While the company’s finances are mostly in the green, Gap noted that tariffs could end up costing them $250 to $300 million if mitigation efforts aren’t implemented. With proper strategies in place, Gap is expecting "a remaining net impact of about $100 million to $150 million to fiscal 2025 operating income."
To refresh: Gap’s brand portfolio includes Gap, Old Navy, Banana Republic, and Athleta. Gap hasn’t shared if or when price hikes could go into effect due to tariffs. However, execs have alluded that the increase won’t have a significant effect on shoppers.
"Based on what we know today, we do not expect there to be meaningful price increases or impact to our consumer," Gap CEO Richardson Dickson told CNBC.
RELATED: Car Prices Climb as Ford and Subaru Pass on Tariff Costs to Consumers.
3. Ross
Ross and T.J. Maxx Accused of Selling Accessories With High Levels of Toxic LeadShutterstock
First-quarter earnings fell flat for the 13 weeks ending May 3, said Ross CEO Jim Conroy in a news release. The discount retailer garnered $479 million in net income—though, this time last year, that number stood at $488 million. Despite this, Ross said it saw a steady increase in monthly sales, month after month.
Looking ahead, Ross said its prices will no longer be protected from inflation and tariffs. "We expect pressure on our profitability if tariffs remain at elevated levels," explained Conroy. More than half of Ross' merchandise is imported goods from China, which will inevitably succumb to tariff-induced price hikes.
"The volatility of trade policies and the corresponding impact on the economy, the consumer, and our profitability is highly unpredictable. During these uncertain times, we will focus on what we can control and manage the business conservatively," said Conroy.
4. Best Buy
Best BuyShutterstockBest Buy continues to get sidelined by tariffs. CEO Corie Barry told reporters that 30 to 35 percent of the company’s items come from China, while roughly 40 percent are sourced from Vietnam, India, South Korea, and Taiwan, per CNBC. As a result, Best Buy is increasing prices on select items—a move that Barry describes as "the very last resort." It’s unclear which products will go up in price.
5. e.l.f. Cosmetics
7 | e.l.f. CosmeticsShutterstockOn May 23, e.l.f. Cosmetics announced on Instagram that it will be raising its prices by $1 across the board. The price hike takes effect on Aug. 1, 2025.
"We know things are tight right now…Not gonna lie, inflation and tariffs are hitting us hard," the makeup company said in a photo slideshow. In the caption, e.l.f. reiterated that providing its customers "the best of beauty is getting more $$$ but we’re committed to keeping the quality high and prices e.l.f.fordable."
The company pledged to keep 75 percent of its products at $10 and under. Additionally, execs are "keeping an eye on the tariff situation as it evolves."
