AutoZone Will Be Raising Prices For Consumers Thanks To Donald Trump’s U.S. Tariff Plans

Yahoo Finance reports that the CEO of automotive retail giant AutoZone admits that if tariffs are implemented, the consumer will undoubtedly bear the higher cost. 

Philip Daniele said during an earnings call in November 2024 that the company already anticipates product costs to increase, and if tariffs are added, the customer will have to pay up. “If we get tariffs, we will pass those tariff costs back to the consumer,” Daniele said. Under his leadership, he understands that new policies handed down by the Donald Trump administration will affect margins.  

Tariffs, which include a 10% to 20% tax on all imports and potentially 60% to 100% on goods from China, have increased concern from consumers and corporations trying to protect their profit. AutoZone is not the only company that depends heavily on imported goods from overseas and is preparing for risky changes. Shoe conglomerate Steve Madden has already taken action. With 70% of its sources coming from China, the company announced it would cut ties with them by 50% — working with other foreign entities like Vietnam, Cambodia, and Mexico. 

However, shoe fanatics should already count on price increases as leadership deals with the changes affecting the supply chain. 

Columbia Sportswear and the National Retail Federation (NRF) expressed concerns about tariffs making their bottom line less affordable, which could result in a downfall of customers. The world’s largest retail trade association labeled the proposed tariffs as “a tax on American families.” It issued a warning that the cost of everyday goods like food and clothing will see a sharp price increase. In a report the association released on Nov. 4, Vice President of Supply Chain and Customs Policy Jonathan Gold says American consumers can expect to lose anywhere ​​between $46 billion and $78 billion in spending power with added tariffs.

A $90 pair of sneakers could cost between $106 and $116, and a $100 coat could cost over $20.

On the campaign trail, President-elect Trump “promised” a slowdown on inflation,” but U.S. Treasury Secretary Janet Yellen warned that tariff payments would only increase it, and an analysis from the Budget Lab at Yale University supports her theory.

“A consistent theoretical and empirical finding in economics is that domestic consumers and domestic firms bear the burden of a tariff, not the foreign country,” the report from mid-October 2024 revealed. 

Some companies are pausing any sudden movement until Trump actually makes a move. The CEO of ELF Beauty, Tarang Amin, says he will need to see the policy first before he even thinks about raising prices.

“We don’t like tariffs because they are a tax on the American people,” Amin said, according to Business Insider. He revealed that the company has had to deal with a 25% tariff since 2019 due to policies from Trump’s first White House reign. “And at that time, we pulled all the levers available to us to minimize the effects to our company and our community.”

Trump-Vance transition spokeswoman Karoline Leavitt defended the first-term tariff, claiming it created jobs and restricted inflation. This time, Leavitt feels her boss will work to lower taxes and create more American jobs with added tariffs.

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