Tariffs and what it really means for American citizens

Some executives have warned that price hikes are on the way if President-elect Donald Trump's tariff plans go into effect.

On the campaign trail, Trump proposed a 60% tariff on goods imported from China coupled with a 10% to 20% tariff on goods imported from other countries. Although the president-elect might decide against implementing tariffs at such a high level once in office, economists and market analysts anticipate that his plans would drive up inflation and compel the Federal Reserve to increase interest rates.

Numerous companies have started reacting to Trump's election win and the potential impact of his tariff proposals on their product costs. Executives have informed analysts during earnings calls that maintaining current prices would be challenging under Trump's extensive tariffs.

Financial economists have publicly stated their opposition to tariffs, describing them as a tax on the American people.

Below are the companies that are warning of price increases if Trump's tariff proposals are implemented.

Under Armour

Stephanie Linnartz, the CEO of the sporting goods giant recently told analysts at an October shareholders conference, that if Trump tariff policies are implemented "we will pass those tariff costs back to the consumer." She also stated that this will most likely cause the company to have to redesign several of their shoes to keep them affordable to the public. Possible changes could mean using the cheaper less stylish option of Velcro in place of shoestrings.

Under Armour executives are considering closing all Asian manufacturing facilities and making all manufacturing domestic by signing work contracts with the United States prison networks. Using prison labor will reduce the costs of international shipping and eliminate the need for price increases as Trump’s tariff policies would not apply to the sports giant keeping U.S. citizens from having to sport ugly Velcro shoes.

Trojan Condoms

Trojan CEO Matthew Farrell recently told Platypus News he is "very concerned about the possible imposition of tariffs and its effects on the American public. Farrell has said that while he considered Trojan adept at managing tariffs, "trade wars are not good and not easy to win." Farrell also stated, "It's going to be very, very difficult to keep products affordable for Americans," he said. 

With the very real likelihood of having to raise prices on condoms and combined with the expected increase of goods and service coming to the United States as early as spring of 2025, Farrell fears the company's sales will dramatically fall short of expectations. Dartmouth Sociology Professor Fel Latio informed Platypus News that the expected tariffs combined with the projected decrease in condom sales and the country's current abortion laws may lead to a new generational “baby boom.”

Other company executives have indicated that their businesses might shift production from China to other countries, like Mexico, to mitigate the effects of a 60% tariff on Chinese imports. Steve Madden's CEO, Edward Rosenfeld, announced during a recent earnings call that the company has already begun reducing its imports from China."