More than half of U.S. retailers are preparing to raise prices in response to mounting tariff costs, according to a recent survey by Allianz. The study, which polled 4,500 businesses across nine countries, found that 54% of U.S. firms plan to pass the additional costs on to consumers. Meanwhile, only 22% are willing to absorb the impact, and 24% are exploring alternatives like switching suppliers or scaling back product lines.
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The tariff surge began earlier this year under President Donald Trump, with a 25% duty on imports from Canada and Mexico and a 10% levy on Chinese goods. These measures have forced companies across multiple industries to rethink their strategies, according to Stephen Dyke, Principal Solutions Consultant Manager at FourKites. “Electronics, machinery, plastics, and furniture are especially exposed — sectors where China has historically been a key supplier,” Dyke noted.
While the White House later rolled back some proposed tariffs, significant ones remain. These include a 10% blanket tariff on all U.S. imports, a 30% duty on Chinese products, and targeted levies on sectors like metals and auto parts.
Jean-Pierre Dubé, a marketing professor at the University of Chicago Booth School of Business, explained the pricing dilemma: “If your imports are now more expensive due to tariffs, basic economics says you’ll need to raise prices. But companies are wary of appearing opportunistic, especially in the eyes of Washington. Global price trends can help justify increases.”
In logistics, the ripple effects are already being felt. According to Sea-Intelligence, blank sailings on the Transpacific route rose sharply in April, largely driven by the latest tariff round. As U.S. businesses adapt, the long-term implications for global supply chains remain uncertain.
