Tariff-Driven Price Hikes Loom as Stockpiles Dwindle

According to the International Chamber of Commerce, tariff-related price hikes may start to impact consumers by the end of the third quarter of 2025. Businesses across various industries, from cars to pharmaceuticals to food and beverages, have been expediting deliveries to the United States this year to get ahead of President Trump's tariffs.

These companies have accumulated about four months' worth of inventory, roughly one month more than average. This has helped them delay hiking prices so far. However, once they have sold off this stockpile, the tariff-driven cost increases are expected to be passed on to customers.

Some of the world's largest corporations have been warning for months that they would be squeezed by the new duties. Now, they have started outlining plans to pass on the costs and adjust their business models to cushion the blow of rising expenses, trade policy uncertainty, and waning consumer confidence.

Companies are carefully testing how much of the tariff costs they can transfer to U.S. consumers. Global retailers, including sandal maker Birkenstock and jeweler Pandora, have also considered raising prices across multiple markets to avoid hurting their American sales.