One CEO's Impossible Mission to Stay Ahead of Trump's Tariffs
The small Wisconsin company has raised prices twice this year on some products. Tormach also asked a landlord to alter a lease. Then it told staff of roughly 100 employees that it was reducing 401(k) matches and eliminating some bonuses.
Tormach had thought it was prepared for a moment like this. The company tried to get ahead of a potential trade war by shifting production from China to Mexico, where it bought a factory in 2023. In August, it boosted its stockpile of Chinese-made goods by 20% to blunt the possibility of fresh China tariffs, squeezing its cash flow. It sped up plans to triple production in Mexico.
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It's almost impossible to avoid tariff-related price hikes while shopping. A universal 10% tariff on all countries has been in effect since April, and over 100 countries could soon face higher reciprocal tariffs if they don't reach a trade agreement with the U.S. before Aug. 1. Since the trade war is expected to heat up even more in the coming weeks, don't be surprised if you're suddenly paying more for clothes, tech, household basics and groceries. That said, there's still time to save — tariffs only apply to imported goods, so prices on products currently in U.S. warehouses aren't currently shooting up. Once that supply runs out, however, many brands will have no choice but to raise prices, including those that already did a first round of hikes earlier this year. Below, I spoke with experts about what they recommend buying before tariffs have a significant impact on your shopping cart. They also responded to frequently asked questions about tariffs and shared tips for saving money. Want more from NBC Select? Sign up for our newsletter, The Selection, and shop smarter. What to buy as tariff-related price hikes roll out We don't know what the exact impacts of tariffs will be, but one thing is for sure: almost everything you buy is getting more expensive, says Dr. Ross Steinman, a professor of consumer psychology at Widener University. That doesn't mean you should panic buy — it does, however, mean that now is the best time to purchase anything on your wishlist or that you've been saving up for. It's crucial to focus on higher-cost items produced abroad, like tech, appliances, furniture and cars, as well as clothing, shoes and household basics like groceries and cleaning supplies, says Vipin Porwal, the CEO and a consumer savings expert at Smarty. A few things to keep in mind: First, as I said above, tariffs only apply to imported goods, so the price of products currently in U.S. warehouses aren't shooting up. But it's only a matter of time before that stock runs low and companies have to import more goods, which will be subject to the new tariff rates. We're also already seeing brands across industries raise prices or warn customers about impending hikes, including big names like Nike, Black+Decker and Fabletics. And with the threat of higher duties looming, companies that already raised prices could do so again. Also, remember that even if a product is manufactured in the U.S., tariffs are causing companies to face higher production costs. They often import materials like fabric, batteries and microchips from foreign countries, so expect increased prices on American-made goods, too. Below, I rounded up examples of products you should consider buying before more tariff-related price hikes roll out. They're all manufactured in places subject to universal tariffs or higher country-specific duties. Basics and groceries During a recent earnings call, Procter & Gamble's CEO said shoppers will start seeing price hikes from its brands this summer, including Tide, which has manufacturing plants in the U.S. but may import ingredients, materials and packaging from abroad. These laundry detergent pods have a color protector, odor fighter and stain remover inside. They dissolve quickly in cool or warm water, according to Tide. Procter & Gamble also owns the paper goods brand Bounty, which, similar to Tide, makes its products across the U.S. but may import ingredients, materials and packaging from abroad. These paper towels are absorbent so you can quickly soak up messes. Rolls come pre-measured, letting you tear off small or large sheets along the perforated lines. Kosterina harvests Koroneiki olives in Greece to make this extra-virgin olive oil. Before the price of this pantry staple increases due to the 15% tariff imposed on countries part of the European Union, consider buying a couple of bottles. The EVOO, which I use for sauteing, roasting and making dressings, has a buttery, peppery flavor. Technology Apple makes most of its hardware in China and produces devices like iPhones, iPads, MacBooks and AirPods in India and Vietnam. NBC Select reporter Harry Rabinowitz, who tested Apple's AirPods 4 for two months, says they're a small, comfortable pair you can rely on daily. 'These are the best earbuds for anyone who hates the feeling of rubber eartips clogging their eardrums,' he says. 'They also have new features like dust and water resistance, and adaptive audio, which automatically switches between noise cancellation modes.' The JBL Clip 5, which is made in China, is our team's go-to Bluetooth speaker — the audio quality is impressive for the device's size, and its built-in carabiner clip lets you attach it to bags, bikes, beach umbrellas, bathroom towel rods and more. You can use the speaker for up to 12 hours before needing to recharge it, according to the brand. The Clip 5 is also dust- and water-resistant. While Nintendo didn't raise the price of the Switch 2 prior to its launch in June, the company, which makes most of its products in Asia, marked up related accessories. It also said 'other adjustments to the price of any Nintendo product are possible in the future, depending on market conditions.' The original Switch is beloved among the NBC Select staff, and if it's on your wishlist, we recommend buying it soon — its price could increase at any point, and it's more readily available compared to the frequently out-of-stock Switch 2. This handheld gaming console has two detachable Joy-Con controllers and three play modes: TV, handheld and tabletop. It's also designed with built-in motion controls that immerse you in games. Most Google Pixel products are made in China and Vietnam, like the Pixel Watch 3, which won an NBC Select Wellness Award. Rabinowitz says it's Google's best smartwatch yet, although it's only compatible with Android phones (which are also likely to increase in price soon). It has fitness tracking features, including the ability to automatically log workouts and build custom runs. The water-resistant watch has a 24-hour battery life, according to the brand, and collects data about your sleep. Clothes and shoes Gap Organic Cotton VintageSoft T-Shirt $20.00 $24.95 Gap Now 20% off I buy basics from Gap every time they're on sale, including this 100% cotton T-shirt, which is made in India. The shirt has a soft, loose feel, short sleeves and a crewneck. It runs true-to-size, in my experience. I typically wear it tucked into a pair of jeans, and in the colder months, I throw a cardigan over it. These Levi's jeans, available in men's and women's sizes, are produced in China, but the brand makes and sources apparel from across the world. 'I've been wearing a pair of Levi's 501's for over 6 years now,' says NBC Select editor Jordan Bowman. 'I love the classic, straight fit because it works for almost every outfit, and the cut is honestly timeless. There's a reason these are one of most iconic pairs of denim of all time.' Lululemon, which makes and sources products from across the world, raised prices on a small portion of its merchandise this summer. According to an earnings call, the hikes were 'modest' and 'strategic.' The brand didn't specify exactly what products increased in price, or whether customers should expect additional increases in the future. Lululemon's Wunder Train High-Rise Leggings are my all-time favorite pair for high-intensity workouts like running, as well as strength training. They have two side pockets, a hidden pocket in the waistband and a waistband drawcord. Adidas, which primarily makes its shoes in Asia and Germany, will eventually raise prices on its U.S. products, according to the brand, which did not disclose how much increases will be or what items will be affected. These are some of Adidas' most classic sneakers for men and women. The Samba has a leather upper, synthetic fabric lining and grippy rubber outsole. Birkenstock, which makes products at its factories in Germany, plans to raise prices globally to offset tariffs at some point before September. The brand's Arizona slip-on sandal for men and women has two adjustable straps and a cork footbed. There's also a deep heel cup to keep your foot secure, as well as a raised toe bar to encourage the natural gripping motion of your feet, according to the brand. During a recent earnings call, Under Armour, which sources products from countries like Vietnam, Jordan and Indonesia, shared that it's increasing prices on its apparel, shoes and accessories. We've tested lots of Under Armour's activewear and sneakers over the years. The Charged Surge 4, available in men's and women's sizes, is a basic shoe that's great for walkers, runners and gym goers. It has a cushioned midsole to support feet and a grippy rubber outsole to stabilize you on various surfaces. The sneaker is also made with mesh to keep feet cool. Home and kitchen SharkNinja already raised prices on a handful of products in response to tariffs, and will continue to, according to a statement from the company's CEO during a recent earnings call. Almost every NBC Select staff member has a Ninja appliance in their kitchen, most of which are manufactured in China and Southeast Asia. While we love using the Creami to make frozen treats, we rely most on Ninja's basic kitchen gadgets, like blenders, air fryers and coffee machines. This air fryer is recommended by NBC Select SEO editor Nikki Brown, who appreciates that it's big enough to feed a few people, yet compact enough to keep in her small kitchen. The appliance is easy to operate, and you can use it to air fry, roast, reheat and dehydrate ingredients. Its detachable parts are dishwasher-safe, according to the brand. We recommend Dyson's vacuums, which are made in countries like China and Malaysia, because they have superior suction and make cleaning all types of floors a breeze. If you have one on your wishlist, now is the time to buy — Dyson's vacuums are hundreds of dollars, so potential price increases could put them out of your budget. The Ball Animal 3 Extra upright vacuum is designed to clean large homes with pets. It has a detangling brushhead, three cleaning modes and a built-in filtration system, plus it comes with multiple accessories, including a pet grooming tool. In the spring, Sproos notified customers that it planned on holding prices steady for the time being. We're keeping a close eye on increases, which we haven't seen yet — that means now is the best time to invest in one of the brand's filtered showerheads. This set comes with a handheld fixture that has a replaceable filter and three spray modes. Everything you need for installation is included, including steel pliers and step-by-step instructions. Ikea's furniture and home goods are centered around Swedish and Scandinavian designs, but they're manufactured worldwide. Rabinowitz's favorite Ikea piece is this shelf, which he has a larger version of. 'This storage shelf has moved with me across three apartments in New York City — it's outlasted couches, mattresses, bed frames and TV stands,' he says. 'It's not going to wow anyone aesthetically, but it is extremely practical.' Many brands, including Casper, assemble their mattresses in the U.S.. Still, they import materials like fabrics, foam and springs from overseas — that could lead to increased production costs for companies, and, in turn, increased prices for shoppers. NBC Select updates editor Mili Godio recommends Casper's Original Hybrid Mattress if you need to upgrade soon. 'I bought this mattress in 2021 and it still feels brand new years later,' she says. 'It's semi-firm, which is perfect for my husband and I since we tend to have different preferences. I'm really picky about my mattresses because I'm a very hot sleeper, but this one manages to feel fairly cool and doesn't trap heat, in my experience.' Baby gear The cost of baby gear like strollers and car seats, much of which is produced overseas, is up 20% on average since January, according to BabyCenter, a digital parenting resource. Uppababy raised prices across most of its products a few months ago, so if you're in the market for one of the brand's strollers, car seats, high chairs, changing backpacks or bouncers, buy it before another round of hikes happen. Rabinowitz used the brand's Aria car seat to travel with his newborn, and he still uses the brand's Vista V2 stroller with his now 1-year-old. He recommends buying from Uppababy if you're looking for high quality pieces and peace of mind as a parent. Coterie already increased the price of its monthly diaper box by $5, and the price of its 4-pack of wipes by $3, per auto-review shipment. In an email to customers, the brand cited 'global economic factors and rising material costs' as the reason for the hike. Rabinowitz started buying the brand's diapers when his baby was born last year. 'Using Coterie's diapers make me feel good as a parent because they work really well and don't have ingredients that I'm skeptical of, like a lot of plastic and perfumes,' says Rabinowitz. 'The subscription is easy to use and very flexible — if I'm scheduled to get diapers in five weeks but I need them in two, I can move up my shipment date.' Similar to Uppababy, Bugaboo raised prices across its baby gear earlier this year. Select products were impacted, but the brand didn't specify which ones — if you have your eye on something, buy it before its price goes up. NBC senior photo editor Becca Delman, a soon-to-be mom of three, highly recommends Bugaboo's compact travel stroller. 'The Butterfly 2 works so well for my 10-month old and 3.5-year old,' she says. 'It's lightweight, I can fold it with one hand and it's easy to clean. The lay-flat feature is also great for my new baby when he arrives in November.' Will retailers raise prices due to tariffs? Yes, in addition to individual brands, some retailers plan to start pricing their merchandise higher due to tariffs. Here are a few we know about right now: Walmart: Walmart started rolling out price hikes this summer, although the retailer didn't share details about what types of products will be impacted or what the rollout will look like. Target: Target has recently reported lower earnings and ended its price matching policy, signs that it will likely raise prices due to tariffs in the future. Earlier this year, the retailer's CEO also hinted at increasing the cost of goods in categories like groceries and apparel, according to CNBC. Best Buy: Best Buy already raised prices on some items in mid-May, but additional increases may be on the way, according to CNBC. Costco CNBC. The companies below already raised prices due to tariffs, and they may do so again depending on how policies change over the next few weeks. I'll continue updating this list as more companies announce hikes. Expert tips: How to save right now Tariffs are causing many people to reevaluate their spending habits. In fact, 49% of U.S. consumers plan to buy less frequently if/when tariffs raise prices, according to Smarty. Here are a few expert tips from Porwal to help you save. Switch to store brands, which tend to cost less, for everyday essentials like groceries, paper goods and cleaning products Consider buying secondhand or refurbished items, especially clothing and tech. Activate cash-back discounts while shopping Use brands' websites, apps and cash-back extensions to bookmark items you consistently buy or have on your wishlist so you can get alerts about sales Consider paying for larger purchases with a credit card that lets you earn points toward future rewards Sign up for loyalty programs at retailers you frequently shop from. Memberships like Amazon Prime, Target Circle and Walmart+ often offer benefits like exclusive deals and free, fast shipping Frequently Asked Questions What are tariffs? Tariffs are taxes on imported goods. If a company brings foreign goods into the U.S., it must pay the U.S. government a percentage of those goods. What tariffs are currently in effect? Tariff rates are constantly changing as the U.S. government negotiates deals with its trading partners globally. In addition to the tariffs below, all of which are currently in effect, numerous countries, including Brazil, Canada, Mexico and South Africa, could soon be subject to high reciprocal tariffs once a pause expires on Aug. 1. China is also in ongoing talks with the U.S, about tariffs — the current 90-pause on duties between the countries expires on Aug. 12. 10% universal tariff on imports from all U.S. trading partners, unless they're subject to country-specific rates 15% tariff on imports from countries part of the European Union, with exceptions for select products, like all aircraft and component parts, certain chemicals, generic pharmaceuticals, semiconductor equipment and some agricultural products 15% tariff on imports from Japan Will tariffs raise prices? Tariffs will eventually raise prices for U.S. consumers, but so far, the impact is muted, says Ales. Generally speaking, prices haven't changed much across industries since duties first went into effect in April — that won't be the case forever though. 'Companies did a lot of stocking up in advance of tariffs, creating an inventory that's almost like a shock absorber to prevent some of the price changes,' says Ales. 'But eventually, that inventory runs out, and as companies get used to this new landscape, they'll begin to sit down and figure out how to adjust to it.' Since tariffs are higher under the current Trump administration, brands need to find ways to pay increased duties while continuing to make a profit. Raising prices on their products, or adding an additional fee at checkout, is a route many will take. 'The tariff needs to be absorbed by someone — is it the business or the consumer?,' says Steinman. 'We don't know exactly, but most likely, there will be some absorption occurring at the consumer level.' What will tariffs raise prices on? 'In terms of prices and costs going up, it appears that it's going to be almost universal,' says Steinman. 'Right now, it seems like it's not going to be specific to any one category or industry.' That said, price hikes will likely be the most noticeable among categories like groceries, vehicles and auto parts, clothing, shoes, electronics, appliances, furniture and home goods, says Porwal. How much will tariffs raise prices? There's no standard amount by which tariffs will raise prices on consumer goods, says Tala Akhavan, the COO of Pietra, an AI-powered sourcing platform that works with e-commerce brands. Companies large and small are approaching price hikes individually and using different strategies to adjust to their new reality. For example, some are splitting the burden of increased duties between customers and themselves, others are fully eating costs and finding new manufacturers, and a select few are putting all tariff fees onto customers, says Akhavan. The strategy a brand takes plays a large part in how much it increases its prices by. Long story short: consumers should expect to pay more for goods right now, says Akhavan. 'So far, brands that are raising prices seem to be keeping them that way. There's so much opacity around how the tariff situation is going to play out, and as a bit of insurance, brands are keeping their prices elevated, especially since they're accepting the volatility around tariffs,' she says. 'It's hard to say where tariffs are going to land in the long term, but for the most part, I don't see a world where we go back to exactly where we were.' Will tariffs increase prices on products made in the U.S? Yes, tariffs are likely to increase prices on products manufactured in the U.S. as well as overseas, says Ales. Many domestically-made goods rely on imported materials, packing and machinery, all of which cost more now. Meet our experts At NBC Select, we work with experts who have specialized knowledge and authority based on relevant training and/or experience. We also ensure that all expert advice and recommendations are made independently and with no undisclosed financial conflicts of interest. Dr. Ross Steinman is a professor of consumer psychology at Widener University. Vipin Porwal is the CEO and a consumer savings expert at Smarty, a cashback browser extension. Laurence Ales is a professor of economics at Carnegie Mellon University's Tepper School of Business. Tala Akhavan is the COO of Pietra, an AI-powered sourcing platform that works with e-commerce brands. Why trust NBC Select? I'm a reporter at NBC Select who has been covering tariffs since they were imposed earlier this year. To write this article, I interviewed four experts about what you should buy as brands raise prices due to tariffs, and rounded up a handful of related foreign-made goods the NBC Select staff recommends. I also put together a list of brands that have raised prices due to tariffs already.
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NEW YORK -- U.S. stock indexes are tiptoeing around their record levels on Tuesday as an incredibly busy week for Wall Street picks up momentum. The S&P 500 was up 0.2% in morning trading after setting an all-time high in six straight days. The Dow Jones Industrial Average was down 8 points, or less than 0.1%, as of 10:15 a.m. Eastern time, and the Nasdaq composite was adding 0.2% to its own record. JetBlue Airways climbed 3.7%, and SoFi Technologies jumped 17.1%, but Merck dropped 4.7% following a torrent of profit reports from big U.S. companies. They're among the hundreds of companies telling investors this week how much they made during the spring, including nearly a third of the stocks in the S&P 500 index. Treasury yields eased in the bond market as the Federal Reserve gets set to begin a two-day meeting where they will decide what to do with short-term interest rates. Despite angry lobbying from President Donald Trump for lower rates, which would give the economy a boost, the widespread expectation is that the Fed will wait for more data about how Trump's tariffs are affecting inflation and the economy before making its next move. The U.S. economy has seemed to hold up OK so far despite the pressures of tariffs, though it does appear to be slowing. One report on Tuesday said that U.S. employers were advertising fewer job openings at the end of June than a month before, though still a bit more than economists expected. A separate report said confidence rose among U.S. consumers, but a measure of their expectations for the economy in the short term remains below the level that typically signals a recession ahead. "Consumer confidence has stabilized since May, rebounding from April's plunge, but remains below last year's heady levels,' according to Stephanie Guichard, senior economist, global indicators, at The Conference Board. Chinese stock indexes, meanwhile, were mixed as top trade officials from the world's two largest economies headed into a second day of talks about tariffs. U.S. Treasury Secretary Scott Bessent and Chinese Vice Premier He Lifeng were meeting in Sweden's capital and working against an Aug. 12 deadline. If they don't reach a deal or at least an extension on their truce by then, triple-digit tariffs are set to resume. Later this week, another deadline is looming on Friday for many of Trump's proposed tariffs on other countries. And if that weren't enough, several highly anticipated economic reports are also on the way, including the latest monthly update on the job market. This jam-packed week could prove pivotal in determining whether the U.S. stock market can keep climbing to more records or succumb to criticism that it's grown too expensive following its quick leap in recent months. One way companies can tamp down such criticism is to deliver solid growth in profits. That helped Cadence Design Systems, whose stock came into the day with a gain of 11.1% for the year so far. The computational software company said it's continuing to benefit from the flood of investment into the artificial-intelligence industry, and it raised its forecast for revenue growth this year. Its stock rose 10.2%. But investors have also been punishing stocks of companies that have failed to meet expectations so far this reporting season. UnitedHealth Group dropped 3.7% after reporting a profit for the spring that fell short of analysts' expectations. It also gave a forecast for profit over all of 2025 that investors found disappointing. The health care giant said it expected to earn at least $16 per share, when analysts were looking for something close to $20, according to FactSet. Shares of Novo Nordisk that trade in the United States tumbled 20.5% after the Danish company cut its forecast for sales growth this year, in part because of lower expectations for its Wegovy weight-loss drug because of high competition. It also named a new chief executive officer. In stock markets abroad, Japan's Nikkei fell 0.8%, but indexes elsewhere rose across much of Asia and Europe. In the bond market, the yield on the 10-year U.S. Treasury eased to 4.37% from 4.42% late Monday.
