The price increase of popular brands is approaching. The cost of Trump's tariffs a number of global companies will pass onto customers
The situation around the imposition of tariffs by the United States on imported goods is changing from day to day. Almost daily, foreign news agencies bring new announcements about what is happening around tariff policy. Many companies trading on a global scale are already talking about the inevitable price increase. First, it will all concern the American market, but international production and trade chains can also bring global price increases.
Donald Trump indeed spoke about how companies should reflect the increased costs in their own margins, but entrepreneurs have their own strategy and are under pressure to raise prices for end customers due to tariffs.
How high tariffs will stabilize during the extremely dynamic development of these trade wars is very unclear. Currently, American politics is being shaken by a lawsuit about President Trump's powers. On Wednesday, the Federal Court ruled that President Donald Trump exceeded his powers by introducing extensive tariffs that increased import costs for everyone, from giant corporations to ordinary Americans.
Only a court can save the USA from price increases of tens of percent
However, the administration immediately appealed against this decision on Wednesday evening, leaving the situation uncertain for consumers and companies and potentially prolonging the battle over whether Trump's import tariffs will hold or even change the shape of the global economy.
"According to a report by Trade Partnership Worldwide, tariffs are expected to increase retail prices in various categories by 11% to 70%, reduce consumer spending by $123 billion annually, and reduce US economic output by $69 billion,"
The expert on the video game market, Daniel Ahmed, pointed out the calculations of the impact of tariffs on the American economy on X.
The mentioned report statistically calculates the possible price increase for some electronic products on the American market. A number of them are produced predominantly in China, which is the target of the highest American tariffs. The report calculates probable price increases in tens of percent for video game consoles, TVs, displays, headsets, computer components, such as keyboards, mice or printers, and also for mobile phones.
Adidas plans to raise prices and there is a threat also for European cars
In the last few years, the global production of smart mobile devices has been intensively relocated to China. Traditional manufacturers in this sector were in a number of cases absorbed by Chinese capital. An example can be the American phone brand Motorola, which now belongs to the Chinese.
Premium Apple smartphones are still in the possession of the eponymous American company, but price increases of Apple's iPhones are also on the agenda. The price tag for iPhone 17 could exceed, according to estimates, a thousand dollars against the current price of 799 dollars. Moreover, Apple did not react to the tariff policy according to Trump's plans and does not intend to relocate its production to the USA, and the president even threatened the company with an unprecedented additional tariff.
Tariffs will fundamentally affect not only American companies. The leading German sports equipment manufacturer Adidas, products originally a footwear company, are sold worldwide. The American market is key for the company.
"Given the uncertainty around negotiations between the USA and individual exporting countries, we do not know what the final tariffs will be,"
said the CEO of Adidas Bjørn Gulden according to CNN, however, the company intends to reflect American tariffs in the prices on the local market.
Due to the interconnectedness of the global market, consumer prices may rise even in Europe. The Czech economies will be mostly indirectly affected through Czech suppliers of German car manufacturers. The latest estimates talk about a possible loss of 0.3 to 0.5% of GDP through the automotive sector, and car manufacturers may therefore want to pass their costs on to consumers.
Sources: author's text, CNN, e15.cz, novinky.cz, tomshardware.com, X.com
