The trend: A growing number of major brands—including Mattel, Pandora, Adidas, and Ford—across a range of categories are warning that tariffs are eroding margins and forcing price hikes.

• Mattel, the company behind Barbie, Hot Wheels, and Fisher-Price, said it will raise US prices “where necessary” to counter rising costs. The announcement followed President Donald Trump’s acknowledgment of the toy industry’s challenges: “Maybe the children will have two dolls instead of 30 … and maybe the two dolls will cost a couple of bucks more.”
• Adidas similarly flagged price increases, citing its reliance on overseas manufacturing: “We currently cannot produce almost any of our products in the US.”
• Pandora, which implemented a 5% price hike last October, said it can absorb the current 10% universal duty but warned that steeper “reciprocal” tariffs would trigger it and its competitors to significantly increase prices because the affordable jewelry sector is heavily reliant on manufacturing in Thailand, Vietnam, India, and China.
• Ford has already raised prices on three Mexico-built models by up to $2,000, per Bloomberg. And more increases may be coming: Anderson Economic Group estimates domestic vehicle prices could climb $2,000 to $3,000, while foreign models could jump by more than $12,000.

More pressure ahead: Tariff-related cost increases are just beginning. The first freight vessels carrying Chinese goods hit with new duties are arriving at US ports. Affected retailers include Amazon, Home Depot, Ikea, Ralph Lauren, and Tractor Supply—meaning price impacts will ripple across a wide swath of consumer goods.

The consumer view: Tariffs and inflation are top of mind for many consumers.

• More than a quarter (26%) of US consumers named “inflation/prices” as their most pressing concern; 98% called it “important,” per a recent Economist/YouGov poll.
• Consumers are calling for transparency: 61% believe businesses should disclose how much of a product’s price is due to tariffs—and some retailers are already doing so. Nevada bike shop owner Jared Fisher added a “tariff” line to price tags after a major supplier raised prices by 10%. He told Business Insider that it was to help customers understand why prices are going up.

Our take: While tariff-driven price hikes may be necessary, they come with real risk—threatening both consumer spending and brand equity.

Passing rising costs to shoppers erodes purchasing power, prompting cutbacks on discretionary spending, delayed upgrades, and skipped big-ticket buys. That pullback hits hardest in categories like apparel, home goods, and travel, which depend on consumer confidence.

At the same time, brands must balance the need to protect their margins against mounting pricing pushback. Without transparency and a strong value story, price hikes can erode trust and loyalty—demanding agility and deeper consumer insight.

Go further: Stay up to date with the latest tariff developments with our Live FAQ: The Impact of Trump’s Tariffs on Consumers, Businesses, and Trade and read our report Impact of Tariffs on US Businesses.