Under a cloud of tariffs, Walmart is the latest retailer to announce price hikes

NEW YORK (AP) — Volley after volley of tariffs — and at times on-again, off-again trade actions — have put companies around the world on edge. And a handful of major retailers have already raised prices across the U.S., or warned of future hikes.

President Donald Trump has slapped new import taxes on nearly all of America's trading partners and a range of sector-specific goods in recent months — all while some targeted countries, notably China, have responded with their own retaliatory duties. While many of the steepest tariffs have since been paused or reduced, scores of other remaining levies have piled up on businesses.

That's because companies that buy products made abroad pay the tariffs imposed on them — and, as a result, face higher costs that are typically passed on to consumers. Trump has argued that his new duties will bring manufacturing and money back to the U.S. But since so much of what we buy today relies on a global supply chain, economists have long-warned that such sweeping tariffs will mean more expensive prices from the grocery aisle to the auto repair shop.

Many businesses (and their customers) are already facing that reality. Here's some big-name retailers that have recently announced or anticipate price hikes amid the ongoing trade wars:

Walmart became the latest to join the list on Thursday — when the nation’s largest retailer said it must raise prices due to higher costs from tariffs.

While Walmart has built in hedges against some tariff threats, with two-thirds of its merchandise sourced in the U.S., it still isn’t immune. Higher prices began to appear on Walmart shelves in late April and accelerated this month, company executives said Thursday. However, a larger sting will be felt in June and July, just when the back-to-school shopping season goes into high gear.

John David Rainey, the company's chief financial officer, emphasized that prices are going up on many necessities. The price of bananas, imported from Costa Rica, went up to 54 cents per pound from 50 cents per pound, for example. And he thinks that China-made car seats, which currently sell for $350 at Walmart, will likely go up another $100.

“We’re wired to keep prices low, but there’s a limit to what we can bear, or any retailer for that matter,” Rainey told The Associated Press.

Mattel Inc., the maker of Barbie dolls and Hot Wheels cars, said earlier this month that it would also have to raise prices “where necessary” to offset tariff costs.

The toymaker makes 40% of its products in China. It warned of price hikes on May 5 — prior to the U.S. and China agreeing to a 90-day reprieve to temporarily slash the bulk of their sky-high levies — but tariffs on the country still remain higher than before Trump started ramping them up last month.

In its latest earnings call, Mattel said it plans to move roughly 500 products this year from manufacturers in China to sources in other countries, compared to 280 products last year. And for some highly sought-after toys, the company said it would enlist factories in more than one country.

At the start of May, Microsoft raised recommended retailer pricing for its Xbox consoles and controllers around the world. Its Xbox Series S, for example, now starts at $379.99 in the U.S. — up $80 from the $299.99 price tag that debuted in 2020. And its more powerful Xbox Series X will be $599.99 going forward, a $100 jump from its previous $499.99 listing.

“We understand that these changes are challenging,” Microsoft wrote in a May 1 Xbox support update. The tech giant didn’t point to tariffs specifically, but cited wider “market conditions and the rising cost of development.”

Beyond the U.S., Microsoft also laid out Xbox price adjustments for Europe, the U.K. and Australia. The company said all other countries would also receive updates locally. And further down the road, Microsoft said it also expects to make some of its new, first-party games more expensive this holiday season — with a price tag of $79.99.

Last month, e-commerce giants Temu and Shein both announced price hikes in separate but nearly identical notices citing “recent changes in global trade rules and tariffs."

Customers began seeing higher prices for many items in late April — particuarly leading up to the May 2 expiration of the so-called de minimis rule, a duty-free exemption on low-value imports from China that shopping sites have taken advantage of for years. This week's deal between the U.S. and China later eased the burden some — but these products still face duties, with low-value parcels from China that come through the U.S. Postal Service now tariffed at 54% (down from 120%).

Even prior to this reprieve, Temu appeared to halt shipments from China and tap into exisiting U.S. inventory. The retailer, owned by the Chinese e-commerce company PDD Holdings, continues to advertise scores of items from “local" warehouses that carry “no import charges” for U.S. shoppers. Meanwhile, Singapore-based Shein currently has a checkout banner that reads, “Tariffs are included in the price you pay. You’ll never have to pay extra at delivery.”

Toolmaker Stanley Black & Decker said it raised prices in April and plans to do so again in the July-September quarter because of higher tariffs.

“We are accelerating adjustments to our supply chain and exploring all options as we seek to minimize the impact of tariffs on end users while balancing the need to protect our business,” CEO Donald Allan, Jr., said in a statement last month.

Executives at Procter & Gamble — the consumer product giant that makes household brands such as Crest toothpaste, Tide detergent and Charmin toilet paper — has also said it will likely have to pass on higher prices to consumers.

Last month, P&G said it was doing whatever it can to reduce higher costs from tariffs, including from shifting sourcing to avoid duties. But the company said shoppers may still see price hikes as early as July.

AP Business Writers Anne D'Innocenzio and Damian J. Troise in New York contributed to this report.

FILE - Bicycles are displayed at a Walmart, Wednesday, April 16, 2025, in Groton, Conn. (AP Photo/Julia Demaree Nikhinson, File)

FILE - Black & Decker jigsaws are displayed, Wednesday, April 21, 2021 in a New York store. (AP Photo/Mark Lennihan, File)

FILE- In this Feb. 20, 2018, file photo dozens of Barbie dolls are displayed at the Mattel showroom at Toy Fair in New York. Mattel reports earnings Thursday, April 26. (AP Photo/Mark Lennihan, File)

FILE - This is a display of Procter and Gamble Crest toothpaste in a Costco Warehouse in Pittsburgh on Thursday, Jan. 26, 2023. (AP Photo/Gene J. Puskar, File)

FILE - Empty shopping carts are collected from the parking lot at Walmart store in Burbank, Calif., on Thursday, April 10, 2025. (AP Photo/Damian Dovarganes, File)

TRENTON, N.J. (AP) — Richard “Dick” Codey, a former acting governor of New Jersey and the longest serving legislator in the state's history, died Sunday. He was 79.

Codey’s wife, Mary Jo Codey, confirmed her husband’s death to The Associated Press.

“Gov. Richard J. Codey passed away peacefully this morning at home, surrounded by family, after a brief illness,” Codey's family wrote in a Facebook post on Codey's official page.

"Our family has lost a beloved husband, father and grandfather -- and New Jersey lost a remarkable public servant who touched the lives of all who knew him," the family said.

Known for his feisty, regular-guy persona, Codey was a staunch advocate of mental health awareness and care issues. The Democrat also championed legislation to ban smoking from indoor areas and sought more money for stem cell research.

Codey, the son of a northern New Jersey funeral home owner, entered the state Assembly in 1974 and served there until he was elected to the state Senate in 1982. He served as Senate president from 2002 to 2010.

Codey first served as acting governor for a brief time in 2002, after Christine Todd Whitman’s resignation to join President George W. Bush’s administration. He held the post again for 14 months after Gov. Jim McGreevey resigned in 2004.

At that time, New Jersey law mandated that the Senate president assume the governor’s role if a vacancy occurred, and that person would serve until the next election.

Codey routinely drew strong praise from residents in polls, and he gave serious consideration to seeking the Democratic nomination for governor in 2005. But he ultimately chose not to run when party leaders opted to back wealthy Wall Street executive Jon Corzine, who went on to win the office.

Codey would again become acting governor after Corzine was incapacitated in April 2007 due to serious injuries he suffered in a car accident. He held the post for nearly a month before Corzine resumed his duties.

After leaving the governor’s office, Codey returned to the Senate and also published a memoir that detailed his decades of public service, along with stories about his personal and family life.

“He lived his life with humility, compassion and a deep sense of responsibility to others,” his family wrote. “He made friends as easily with Presidents as he did with strangers in all-night diners.”

Codey and his wife often spoke candidly about her past struggles with postpartum depression, and that led to controversy in early 2005, when a talk radio host jokingly criticized Mary Jo and her mental health on the air.

Codey, who was at the radio station for something else, confronted the host and said he told him that he wished he could “take him outside.” But the host claimed Codey actually threatened to “take him out,” which Codey denied.

His wife told The Associated Press that Codey was willing to support her speaking out about postpartum depression, even if it cost him elected office.

“He was a really, really good guy,” Mary Jo Codey said. “He said, ‘If you want to do it, I don’t care if I get elected again.’”

Jack Brook contributed reporting from New Orleans.

FILE - New Jersey State Sen. and former Democratic Gov. Richard Codey is seen before New Jersey Gov. Phil Murphy delivers his State of the State address to a joint session of the Legislature at the statehouse, in Trenton, N.J., Tuesday, Jan. 10, 2023. (AP Photo/Matt Rourke, File)