A US federal court blocked global tariffs for most President Donald Trump on Wednesday after finding the president’s actions unconstitutional and excessive in his legislative authorities. Another court issued a similar judgment before the appeals court suspends these injunctions.
The move comes after the Trump administration slapped tariffs on almost every product in most countries. As reported by Kiplinger, most duties were suspended for 90 days as of April 8, except for tariffs involving China.
The court’s decision comes as the US retail giant has already warned that consumers should support price increases due to the economic uncertainty caused by Trump’s tumultuous trade policies. Wall Street criticised Trump’s actions by using the term “taco” trade (Trump – always kicks out chickens” as the president often retreated from tariffs after causing market disruption.
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Market uncertainty was a thread of concern shared by most major US retailers this month.
President Donald Trump and Walmart recently went to the toes of the tariff impact as major retailers said they needed to raise prices to offset the newly imposed import tax on their products.
According to the Wall Street Journal, the company has announced other cost-cutting measures.
Walmart, like other major retailers, had sought measures to offset increased costs from tariffs. Walmart, for example, reportedly met with Chinese officials and asked its suppliers to take the brunt of the tariffs. The request sparked legal concerns from China, which ultimately forced the company to face tariffs head on.
Note: Here’s how some of their favorite retailers planned to respond to the tariff hike before the court began issuing rulings on Trump’s customs authorities.
For now, I’m hiking to keep prices low at Walmart
Walmart announced in May that it would raise prices due to the impact of Trump’s tariffs on some of its products, primarily those placed in China.
The announcement comes as the US and China recently reached an agreement to roll back steep tariffs for 90 days. (As of a federal court decision, tariffs on China were temporarily blocked as of May 28th.)
Still, Walmart CEO Doug McMillon said retail giants will be forced to adjust prices in their quarterly revenue call.
“We will do our best to keep prices as low as possible,” McMillon said. “But given the magnitude of the tariffs, even the levels of decline announced this week cannot absorb all the pressure given the narrow reality of retail margins.”
Walmart has shown that its products are imported from dozens of suppliers around the world. Large markets include China, Mexico, Vietnam, India and Canada. China in particular is a major supplier of Walmart toys and electronics.
Regarding food prices, Walmart insisted that prices remain as low as possible.
However, tariffs in countries such as Costa Rica, Peru and Colombia were putting pressure on imports such as bananas, avocados, coffee and roses.
“We will do our best to keep food prices as low as possible and control what we have control,” McMillon said.
Target: A rising price will be a “very last resort”
Target has announced that it will raise prices as a “very last resort” in response to Trump’s tariffs on imported products.
(Image credit: Spencer Platt/Getty Images)
As Walmart warned of price hikes and attracted Trump’s public outrage, other retailers like Target took a different approach.
Target CEO Brian Cornell warned of “large potential costs” as a result of the tariffs, but the company insisted that it would raise prices as a “very last resort.” Cornell also noted that targets face ongoing challenges, including uncertainty regarding the decline in consumer confidence and the potential impact of tariffs.
For now, the merchandising team is working to mitigate the impact of tariffs, Target’s CEO said in its latest revenue call. However, task difficulty was “incredibly high” due to the magnitude of the tariffs across all categories.
“As a company that strives to deliver superior products and outstanding value, we are focused on supporting American families managing their budgets,” Cornell said. “There are many levers to mitigate the impact of tariffs, and prices are a last resort.”
Mattel warned about rising toy prices
US Toymaker Mattel warned that if Trump’s sudden tariffs on China remained, the prices of popular items would rise. Mattel is known for producing Barbies and Hot Wheels.
(Image credit: Jakub Porzycki via Getty Images)
President Trump has admitted that his tariffs will increase the costs of toys sold in the United States.
“Maybe the kids have two dolls instead of 30 dolls?” Trump told White House reporters in May. “Maybe two dolls would cost them a few dollars than they normally do.”
The US toy company and manufacturer of Barbie and Hot Wheels, Mattel, has announced plans to raise the prices of American toys due to the impact of tariffs on China in its latest revenue call.
Due to the uncertainty of the macroeconomic environment, Mattel said that changes in the US world trade policy regarding tariffs will result in mitigation measures being taken to offset the impact of the potential costs of tariffs. Some actions include:
Reduce dependence on Chinese products and diversify pricing actions for supply chain optimization product sourcing in US businesses as needed
In response, Trump misunderstood Mattel as the nation and threatened 100% tariffs on the toy. The president further said Mattel “will not sell one toy in the United States.”
Other US toy manufacturers have warned customers about declining toys and rising prices this year. See Kiplinger’s related article: How 2025 tariffs will affect clothing and toy prices
Nike prices have been announced this week
Nike has announced a price hike that will affect some of its apparel, footwear and equipment in response to Trump’s tariffs on its global trading partners.
(Image credit: Jakub Porzycki/Nurphoto via Getty Images)
Nike said it will raise prices for footwear, apparel and other equipment soon this week. The retail giant known for its sneakers is back to sell its products on Amazon.
Where is the price? Nike said it would raise prices for the following items, according to sources familiar with the issue.
Adult clothing and equipment prices can be seen rising prices for 5Shoe and sneakers, with 2-10 feet of clothing prices exceeding $150, with prices ranging from $100 to $150.
However, children’s items are not affected by price adjustments. According to CNBC, Nike doesn’t want to put financial burdens on his family during school. Other choices may not see price increases like Nike Air Force 1 shoes.
The price adjustments were not directly linked to Trump’s tariffs, as other major retailers announced plans to increase costs due to the impact of the new obligations.
Nike manufactures products in several countries, including China, Vietnam and Indonesia. The price rise could be linked to new tariffs placed in these countries. The price adjustment will take effect on June 1, 2025.
Home Depot’s tariffs won’t raise prices
Dewalt products will be on display at Home Depot in New York City on May 2, 2025. Stanley Black & Decker, parent company of Dewalt and Craftsman, announced price increases across the tool lineup, citing the expected supply chain disruption and production costs associated with new tariffs imposed by the Trump administration.
(Image credit: Michael M. Santiago via Getty Images)
On the surprising turn, Home Depot didn’t raise prices on a massive scale due to Trump’s tariffs. That being said, some products are eliminated due to evolving trade policies.
“It’s not a broad range of things that customers are moving forward at all,” said Billy Bastek, executive at Home Depot, in his latest revenue call. “The items we have can be influenced by tariffs that we have, frankly, that we don’t move forward.”
According to the company, more than half of the products sold at Home Depot are sourced from the US. The retail giant has been working with suppliers for years to diversify its supply chain. Within a year, Home Depot expects it will not rely on one country for more than 10% of its purchases.
“We generally plan to maintain our current pricing levels across our portfolio as we have a great partnership with our suppliers and continue to drive our business.
Have customs been blocked? What’s next?
Two federal courts ruled that President Trump’s drastic tariffs were illegal. Later, when the Trump administration appealed, the federal courts for appeals suspended injunctions from those courts.
What was going on? President Trump’s stance on tariffs has proven unpredictable, and major retailers across the country have had an impact.
Some companies have decided to absorb new tariff hikes on imported goods to stabilize prices, while others have been warned about price increases that began soon this week.
As reported by Kiplinger, customs duties on imported goods are paid by domestic companies. To make a profit, these companies usually pass price increases to consumers like you.
Stay tuned for more updates on how Trump’s tariffs will affect your shopping this year.
