As the ultimate level of import taxes awaits various court rulings, retailers are raising prices in response to the Trump Administration’s tariffs, according to survey results from Signifyd.
“It isn’t surprising that retailers are taking dramatic action in the face of some pretty dramatic tariffs that have been implemented and proposed,” says Signifyd head of storytelling Mike Cassidy. “What surprised me was the big number of retailers — often in the 70-plus-percent range — that are significantly adjusting critical operations and strategies this early in the game.”
Key takeaways:
· 76% of respondents said their businesses had increased the price of goods to mitigate the cost of the new and expected tariffs. On average, retailers are passing along 51% of the cost of Trump’s import taxes.
· Overall, the surveyed merchants, in big numbers, have made big moves in the face of tariffs, including layoffs, store closings, moving production and product sources and rebalancing their inventory.
· The survey also indicates that retailers with online businesses have been scrambling since before the 2024 election to brace for higher import taxes.
· As a result of the impending tariffs, 55% laid off employees; 63% instituted a hiring freeze; 61% moved production from one country to another; 71% switched suppliers from higher tariff to lower tariff countries; 71% accelerated imports from countries subject to tariffs; 71% limited inventory/number of SKUs they sell; 72% substituted U.S.-sourced inventory; and 76% increased the estimated delivery time to customers.
