During Trump’s first term when he imposed much more limited tariffs on China, many companies reported they lacked pricing power to pass on costs to consumers.
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KYLE GRILLOT
When US President Donald Trump slapped bigger-than-expected tariffs on imports from around the world, Americans lamented pending price hikes for Champagne, Parmesan and Ferraris.
But the impact on pockets goes far beyond things like luxury cars and specialist foods. As the new levies take effect – starting Saturday for the 10 per cent base rate – manufacturers and suppliers of everything from daily supermarket goods to shoes, from beauty products to sex toys, have to figure out how much of this extra cost to pass on to customers.
During Trump’s first term when he imposed much more limited tariffs on China, many companies reported they lacked pricing power to pass on costs to consumers.
Here are some of the under-the-radar imports that could now get more expensive.
Ray-Bans
Joe Biden’s Ray-Ban Aviators were an integral part of his look. The iconic sunglasses, first commissioned by the US Army Air Corps in the 1930s and later worn by Tom Cruise in the Top Gun movies, helped the former president craft his All-American image.
Yet most aviators are actually produced in a tiny mountain village on the Italian Dolomites before they’re shipped all across the world, including to America.
That’s because Ray-Ban, along with other popular brands including Oakley, Oliver Peoples and Vogue Eyewear, is owned by the French-Italian eye-wear giant EssilorLuxottica SA, the biggest company in the sector with a market cap exceeding €100 billion ($110 billion). In 2024, its sales to North America amounted to almost €12 billion.
With the European Union now facing a 20 per cent rate — once the reciprocal tariffs kick in on April 9 — accessorising like Cruise’s Maverick character could get a lot more expensive.
Nespresso
Nestle SA’s Nespresso coffee capsules may be sold worldwide — about 14 billion of them a year, according to estimates — but every one is still made in just three factories in Switzerland.
Imports from Switzerland to the US are facing a tariff of 31 per cent (much higher than the neighbouring EU). Nespresso’s global sales amounted to 6.4 billion Swiss francs ($7.5 billion) in 2024, Nestle figures show.
Wigs, Eyelashes and Sex Toys
China is the world’s largest producer and exporter of wigs, with its exports reaching approximately $3 billion in 2022. It accounts for around 80 per cent of the global hair accessories market, according to China’s official Xinhua News Agency, and the US has long been the primary destination.
It also accounts for approximately 70 per cent of worldwide production of false eyelashes as well as 70 per cent of sex toys. The US market for sex toys amounted to $10.6 billion in 2024, according to Grand View Research, with China and India among the top sources. They have been slapped with tariffs of 34 per cent and 26 per cent, respectively.
Americans eyeing cosmetic beauty treatments may have to eventually fork out more for their anti-wrinkle injections. While specific levies on pharmaceuticals haven’t been announced yet, there’s concern that the escape may prove temporary.
AbbVie Inc., the company behind Botox, makes almost of all of the product in the town of Westport on Ireland’s west coast. Production takes place in a highly secure plant, given Botox is made from one of the world’s most toxic substances, botulinum toxin. Any price increases from tariffs will hit US consumers as Botox for aesthetic purposes isn’t covered by insurance. AbbVie reported almost $1.7 billion of Botox cosmetic sales in 2024 (plus another $2.7 billion for therapeutic purposes).
For the health conscious, Oura smart rings are likely to ding higher at the cash register. The tiny devices can track sleep, activity and heart rate just as a smartwatch would, but are popular with consumers who prefer not to wear a bulky gadget on their wrist.
The brand is owned by Finnish technology company Oura Health Oy. It unveiled its latest device about six months ago, the Oura Ring 4, which has a starting price of $349.
Hospital Beds
A major supplier of high-tech hospital beds is Linet Group in the Czech Republic. (One of its branded beds even featured in Netflix’s House of Cards after an assassination attempt on lead character Frank Underwood.)
The company said that for future contracts with US clients, it will have to raise prices and focus more on higher-end products with higher price tags and profit margins. That could have implications for health providers in a country where there is already huge controversy over healthcare costs. According to Chief Executive Officer Tomas Kolar, exports to the US account for about 20 per cent of its €370 million in annual sales.
Birkenstocks
Some companies have already given hints as to how they may respond to tariffs, and how all the price pain may not necessarily fall on American shoppers.
On a recent earnings call, executives at Birkenstock said the German company “historically had the ability to take pricing action globally” to offset pressures like tariffs. That suggests it may try to cover US levies by spreading out any price increases.
Like other firms, it also said that it looks at costs and efficiencies as a way to protect margins. Most manufacturing is done at sites in Germany, but the Americas is the sandal maker’s biggest market, with almost €950 million in annual revenue.
More stories like this are available on bloomberg.com
Published on April 5, 2025
