President-elect Donald Trump has proposed imposing broad tariffs on imports, including up to 60% on products from China. Economists say Mr. Trump’s tariff proposals could accelerate inflation because companies tend to pass costs on to consumers. Some companies have already said Trump’s proposal would result in mandatory tariffs. raise prices.
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Some executives have warned of price increases if President-elect Donald Trump’s tariff plans go into effect.
During his campaign, President Trump proposed imposing 60% tariffs on imports from China and 10% to 20% on imports from other countries. The next president could choose not to impose tariffs of that magnitude once he takes office, but economists and markets expect his proposal to accelerate inflation and force the Federal Reserve to raise interest rates. .
Some companies have already begun to react to President Trump’s election victory and the impact his tariff proposals will have on the cost of their products. Executives told analysts on an earnings call that it would be difficult to maintain current prices under President Trump’s sweeping tariffs.
Other companies are still waiting for more information from the president-elect. Taran Amin, CEO of ELF Beauty, told Business Insider that the company needs to first review President Trump’s policies before making any changes to its pricing, and that new policies will impact its business. said it would be from fiscal year 2025 onwards.
“We don’t like tariffs because they are a tax on the American people,” Amin said, adding that the company has been subject to a 25% tariff since 2019 due to policies from President Trump’s first term. “And at that time, we took every measure available to us to minimize the impact on our company and the community,” he said.
“President Trump imposed tariffs on China in his first term, created jobs, stimulated investment, and did not cause inflation,” Caroline Leavitt, Trump Vance transition spokeswoman, told BI. ” he said. He added that Trump will “work quickly” to cut taxes and create American jobs.
Here are the companies warning of price increases if President Trump’s proposed tariffs go into effect.
autozone
Philip Daniele, CEO of auto parts company AutoZone, told analysts at an earnings call in September that tariff policy has “ebbed and flowed over the years” and that if President Trump were to impose additional tariffs, ” “We’re going to pass those tariff costs on to the United States.” consumer. “
“Typically we raise prices before that,” Daniele said, adding that prices will gradually settle down over time. “So that’s what we’ve done historically,” he said.
columbia sportswear
Columbia Sportswear CEO Tim Boyle told analysts on an October earnings call that the company was “very concerned about the imposition of tariffs,” adding that Columbia is adept at managing tariffs. “Trade wars are not good and are not good,” he said. It’s easy to win. ”
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Boyle also told the Washington Post in October that the company was “going to raise prices.”
“It’s going to be very difficult to keep products affordable for Americans,” he says.
stanley black and decker
Donald Allan, CEO of manufacturing company Stanley Black & Decker, told analysts on an October earnings call that the company was considering “a variety of scenarios” to plan for new tariffs under the Trump administration. ” he said.
“And of course there will be price increases associated with the tariffs that we bring to market,” Allan said. “Given the processes that customers have in terms of price enforcement, there is usually some kind of delay. ” he added.
Alan also said the company would consider moving production outside of China or to other countries such as Mexico to reduce the impact of the 60% tariff on Chinese imports. Steve Madden is among the companies that have announced plans to reduce imports from China, and CEO Edward Rosenfeld said on an earnings call that the company has already begun the process. said.
