As trade tensions remain uncertain, consumers could start feeling the effects at the checkout line. A growing number of major retailers have recently signalled price increases could be on the horizon, citing the rising costs associated with the US administration’s tariff strategy.

For example, Nike, the world's largest athletic footwear and apparel company, announced this week it will nominally raise prices on adult apparel and equipment starting next week, with a larger increase on select high-ticket items.

Walmart, despite its strong Q1 performance, has warned that some goods may soon cost more, echoing similar concerns from Best Buy, Mattel, and other top retailers. In March, Best Buy’s CEO predicted price hikes as vendors begin passing on tariff-related costs. Mattel has also confirmed it will increase toy prices in direct response to the administration's evolving trade policies.

Meanwhile, Amazon posted strong first-quarter earnings on May 1 but, like many of its peers, refrained from offering guidance due to tariff-related uncertainty. Amazon denied a report that it planned to include the cost of tariffs on its main retail website, which had led the White House to slam the online retailer and prompted the president to call founder Jeff Bezos.

Home Depot, on the other hand, is attempting to hold prices steady but has acknowledged that some products could become unavailable due to import disruptions.

These developments suggest that consumer spending is entering a transitional phase. Retailers are not only adjusting prices but also rethinking their distribution and sales strategies to defend market share. As an example, Nike’s renewed partnership with Amazon, its first since 2019, and its investment in AI-powered search and retail innovation exemplify this shift.

While the near-term outlook faces uncertainty, these changes are creating new opportunities for growth and market differentiation. Retailers that can innovate, streamline their supply chains, and meet evolving consumer needs will likely come out ahead in the long run. The shifting landscape could very well lead to a more resilient and diversified retail sector, positioned for future success.