Four executives have publicly said they’d raise prices for consumers if Trump enacts his proposed tariffs.
Some executives have warned that price hikes are on the way if President-elect Donald Trump’s trade plans go into effect.
On the campaign trail, Trump proposed a 60% tariff on goods imported from China coupled with a 10% to 20% tariff on goods imported from other countries. While the president-elect could choose not to enact tariffs at that scale once he assumes office, economists and the market have predicted that his proposals would spike inflation and cause the Federal Reserve to raise interest rates.
Several companies have already begun responding to Trump’s election victory and the implications his tariff proposals would have on the costs of their goods. Executives have told analysts on earnings calls that it would be difficult to maintain current prices under Trump’s broad tariffs.
Other companies are still waiting for more information from the president-elect. Tarang Amin, the CEO of ELF Beauty, told Business Insider that the company must first see the policy Trump enacts before making any changes to its pricing and that a new policy wouldn’t affect the business until after its 2025 fiscal year.
“We don’t like tariffs because they are a tax on the American people”, Amin said, adding that the company had been subject to a 25% tariff since 2019 because of policies from Trump’s first term. “And at that time”, he said, “we pulled all the levers available to us to minimize the effects to our company and our community.
