Summary
Retailers in the U.S. are hiding the costs of tariffs by increasing fees for shipping and other charges, instead of directly raising product prices. These hidden fees make it harder for customers to understand the true cost of items like clothing and furniture. Retailers like Target and Walmart have changed their pricing and labeling strategies in response to these tariff changes.
Key Facts
- Retailers are adding tariff costs to shipping and other fees instead of raising product prices directly.
- New import rules have increased costs for items like clothing, furniture, holiday decorations, and toys.
- Labels are being changed frequently, making it harder for customers to compare prices.
- Target and Walmart confirmed they have adjusted labeling processes to stay competitive.
- Higher shipping costs often result from retailers adjusting fees due to tariffs.
- Some retailers have increased shipping costs significantly; for example, shipping for a pair of pants rose from $15 to $42.
- Retail experts warn that hiding tariffs in shipping fees may lead to customer dissatisfaction.
- More price increases, especially on tariff-sensitive goods, are expected during the holiday season.
