Trump tariffs are already wreaking havoc on U.S. holiday shopping

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This year, the best deals on Theragun massagers won’t come at Christmas.

That’s because parent company Therabody Inc. is raising prices this month on its popular massagers and other items by as much as 15% in response to President Donald Trump’s tariffs.

Chief Executive Officer Monty Sharma said he has to go back to customers such as Target Corp. and Best Buy Co. to discuss even more price hikes after Trump slapped additional levies on China. Meanwhile, all the uncertainty has pushed Therabody to shut down some production and delay product launches. The company, like many suppliers, keeps inventory lean and has about eight weeks of goods left, increasing worry it will sell out by the holidays.

“These are untenable numbers,” Sharma said of the tariffs. “To make things work for us, we need a much, much higher price increase” and that’s likely to hurt demand, he said.

Multiply Therabody’s experience by the thousands of U.S. suppliers and retailers across the U.S., and Americans are headed for a much different Christmas than in years past. Shoppers are primed to see fewer new products and deals, while the retail industry is expected to experience more pain — should tariffs stay in place.

Trump last week said Americans just might have to get used to less.

“Maybe the children will have two dolls instead of 30 dolls,” Trump said at the White House. “And maybe the two dolls will cost a couple bucks more than they would normally.”

Seeing what’s coming, the industry is trying to figure out other ways to secure goods for the holidays, including using items from previous years. Having something to sell is better than nothing. But underwhelming options are likely to dampen spending.

“Basics maintain your business; newness drives growth,” said Marshal Cohen, chief retail advisor at researcher Circana. If supply remains tight, he said, variety could take a hit and soften impulse spending — especially important during the holidays.

At Toynk Toys, CEO Steven Loney would normally be placing holiday orders now with Chinese factories, but he hasn’t because of the tariffs. The seller of items such as Marvel action figures and Hello Kitty key chains is instead planning to tap existing inventory and looking to buy older, cheaper items in the U.S.

“Everything is kind of up in the air,” said Loney, who is also diverting time and energy toward selling more trading cards, which are primarily manufactured in the U.S. “Nobody knows what’s going on.”

B&R Stores, a Midwest grocery chain, is waiting to hear from its holiday vendors on what items are already in the U.S. and which have to be shipped, said CEO Mark Griffin. About 65% of party goods, dinnerware and decorations for the holidays are typically onshore by spring, Griffin estimated, adding that he is now contemplating whether to hit the so-called salvage market that sells older products for lower prices.

“Whether we like it or not, if we have certainty on what’s going on, we can build solid plans. Without knowing, that puts us in a limbo,” Griffin said.

B&R used such dealers during the pandemic, the last time the global supply chain experienced a prolonged snag. But he’s cautious about ordering too early and ending up with too much inventory – especially of older versions of products that consumers may not want. Products for back-to-school season and the Fourth of July are mostly in the U.S. already. But things are more murky for Halloween and Christmas, Griffin said.

Home-goods seller Havenly is leaning into best sellers and pulling back on new items, CEO Lee Mayer said. The company is trying to get as many of its most popular products manufactured and shipped from Cambodia and Vietnam, while discontinuing less popular ones from China.

Deciding how much inventory to order is a debate her teams are having nearly every day, and she hopes there will be more certainty around consumer spending in the summer. For now, her company is cautiously preparing for Memorial Day deals.

“We don’t want to spend too much if the consumer isn’t paying attention,” Mayer said. “It’s hard to plan. Everyone’s a little frozen right now.”

— With assistance from Lily Meier.