Corporations Hike Prices, Shift Manufacturing Amid Trade Tensions

As of July 2025, many U.S. corporations are taking steps to adapt to the ongoing trade tensions and tariffs implemented by the Trump administration over the past several years. According to the article, companies are not only raising prices on a range of consumer goods, but also restructuring their operations, offering fewer products, and in some cases, adding domestic manufacturing capacity.

The price increases are affecting a wide array of products, from shoes and toys to children's apparel. Shoe company Deckers Outdoor, for example, raised prices by around $5 per item this month and plans to gradually increase other prices to account for an estimated $185 million jump in its cost of goods sold this year due to tariffs and other expenses. Similarly, the children's apparel group Carter's started raising wholesale prices in late June to offset an expected $125-$150 million in annual tariff costs.

Beyond raising prices, some corporations are bolstering their domestic manufacturing capabilities and adjusting their supply chains to reduce reliance on imported goods. This shift is driven by the Trump administration's trade policy, which has led to the implementation of tariffs on a wide range of products imported into the U.S.

The article also highlights the impact on toy giants Mattel and Hasbro, which expect to incur around $100 million and $60 million, respectively, in tariff-related costs this year. To mitigate these expenses, the companies are passing on at least some of the costs to consumers through higher prices.

Overall, the article paints a picture of U.S. corporations adapting to the changing trade landscape, with a focus on pricing strategies, supply chain restructuring, and domestic manufacturing investments as they navigate the challenges posed by the Trump administration's trade policy.