U.S. companies have started to raise prices again after months of keeping them steady. Executives and small business owners attribute these new price increases to higher import costs from President Donald Trump’s tariffs, along with rising labor and insurance costs.
The Wall Street Journal reported that businesses across various sectors, including apparel, food, and household goods, have introduced new price lists in early 2026, often seeing increases in the high single digits. The Journal mentioned that Levi Strauss raised prices on some jeans by $5 to $10, while Columbia Sportswear plans similar increases on new seasonal products.
McCormick & Co., the spice and seasoning company, informed investors that tariffs have had a significant impact on costs. The Journal reported that McCormick estimated a $70 million cost from tariffs in 2025 and another $70 million in 2026.
Some smaller companies noted they have less flexibility to absorb cost increases. The Journal highlighted Sin, a housewares maker from Brooklyn, as one of the businesses raising prices due to higher input and labor costs, with the risk of reduced demand if shoppers resist these higher prices.
These latest price hikes contrast with a national inflation rate that has decreased from previous peaks. The Bureau of Labor Statistics reported that the Consumer Price Index rose 2.4% in the 12 months ending in January, down from 2.7% in the 12 months ending in December.
Trump’s new announced tariffs- basically add 20% to the cost of any product you buy. This is going to be horrible pic.twitter.com/1oHX2hx9Pt
— Maya Luna (@envisionedluna) April 2, 2025
Even with lower overall inflation, a key measure of online prices surged at the beginning of the year. The Adobe Digital Price Index recorded its largest monthly increase in 12 years in January, driven largely by categories such as electronics.
The Journal described a broader shift following a period in late 2025 when many companies relied on promotions to maintain stable prices and avoid losing customers. Many firms now report they can no longer absorb the costs related to tariffs and other inputs, leading them to pass more of these expenses onto consumers.
This new wave of increases comes as Trump faces ongoing political pressure regarding the economy. He made lowering everyday goods’ costs a key promise of his 2024 campaign, and recent polling indicates that voters are still focused on prices even as overall inflation has calmed down.
The Journal also cited information showing that many smaller employers plan to raise prices. It referenced a Vistage Worldwide survey revealing that more than half of small business owners intend to raise prices, with many expecting increases above 4%.
Economists and executives have noted that tariffs can take time to translate into higher retail prices. This delay depends on how long companies can sell existing inventory and how contracts secure earlier prices. When new shipments arrive with higher duty costs, businesses usually adjust prices for new items instead of changing everything at once.
The Journal reported that companies have attempted to balance price increases with selective discounts and other strategies to maintain sales. However, it noted that this strategy can backfire if customers hold back on purchases. It cited Stanley Black & Decker as an example of a company that experienced a dip in sales after earlier price hikes, highlighting the difficult choices businesses face.
