To respond to President Donald Trump’s ever-evolving tariffs, retailers might be tempted to cover the cost of the import tax by charging higher prices, but even considering doing so could possibly draw the White House’s ire. When Amazon reportedly was contemplating displaying how much tariffs contributed to products’ prices, for example, Trump called Amazon founder Jeff Bezos to complain. An Amazon spokesperson subsequently told CNN that the company had never considered the move for its main site and would not be implementing it for any outfits. Similarly, when Walmart CFO John David Rainey told CNBC in May that the retailer might have to raise prices because of tariffs, Trump responded on social media that “Walmart should STOP trying to blame Tariffs as the reason for raising prices” and should “‘EAT THE TARIFFS,’ and not charge valued customers ANYTHING.” Michael Klein, head of retail, travel, and hospitality product marketing for Talkdesk, disagrees. “I sometimes shake my head when I hear from the White House that manufacturers and brands are going to ‘eat the tariffs,’ which is bullshit,” Klein told Retail Brew. “If their cost of goods is going to increase for any particular reason, and tariffs in particular, then they are going to have to find ways to” cover increasing costs by “increasing prices” or else finding “a way of making my product at a lower cost.” There’s a new term gaining traction that may shed light on the practice of covering tariff costs without causing a stir: “sneakflation.” It refers to companies passing along higher costs but not hiking prices conspicuously, through such measures as introducing restocking fees when returns had been free, and either raising purchase thresholds to get free shipping or eliminating free shipping altogether. Keep reading here.—AAN | 
