Where tariffs are hiding, and how to tell if you're paying one
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Illustration: Maura Kearns/Axios
Instead of putting "tariff" on the tag, some retailers are slipping costs into shipping, fees or relabels.
Why it matters: Trade duties and new import rules are driving up retailer costs, especially in apparel, furniture, holiday décor and toys. Those costs are starting to be passed to consumers.
The big picture: Retailers are reshaping how prices show up, including raising shipping fees on items that face duties after the late-August end of the "de minimis" exemption on postal shipments to the U.S. worth less than $800.
- Vague charges like "processing" or "import fees" are appearing more often at checkout. Such shifting of tariff costs into the fine print makes it harder to compare prices.
Zoom in: Shoppers have been posting on social media about finding price stickers layered over old tags. TikToks and Reddit posts show Walmart and Target employees spending shifts tearing tags off clothing.
- Both Target and Walmart confirmed they have changed their labeling or re-ticketing process for some items, specifically in apparel, to increase flexibility and stay competitive.
- "Like other retailers, pricing fluctuations are a normal course of business and are influenced by a variety of factors," a Walmart spokesperson told Axios.
The online side: It can be easier to spot the higher prices at the end of the checkout process.
- Stephanie Carls, retail insights expert at RetailMeNot, tells Axios shipping costs have routinely doubled or more — "it doesn't always say it's because of tariffs, but that's often what's behind it."
- GlobalData retail analyst Neil Saunders said retailers often adjust shipping since tariffs feel like a shipping cost — but warns consumers "are more likely to balk at unreasonably high shipping fees than higher priced products."
Case in point: One retailer that shipped a pair of pants (linen trousers in "Cappucino") from eastern Europe for $15 in mid-August shipped the exact same pair of pants, retailing for the same price, for $42 in mid-September, per an Axios editor's receipts.
- An Axios reporter ordered four shirts from Target at $10 each. Three came tagged at $8, while the fourth had its price torn off — highlighting the murkiness of re-ticketing.
Between the lines: Raising sticker prices risks deterring shoppers, but hiding tariffs in fees can feel like bait-and-switch, Shikha Jain, a partner at consulting firm Simon-Kucher, tells Axios.
- Either way, there's a benefit to retailers in "hiding tariff-related price increases" — but also a risk of backlash, Jain said.
What's next: More price hikes are expected, especially on some tariff-sensitive goods, which'll be stocked in smaller assortments this holiday season.
- Retailers who offer pricing transparency and make it easy for consumers to research and compare will be best positioned to capture demand, Ekapat Chareonlarp, senior vice president of global client strategy at Criteo, tells Axios.
- "The browsing mindset will likely evolve into an urge to buy during fall sales events and the holiday season," Chareonlarp said.
Tips for spotting tariffs
- 📦 Watch shipping. Sudden hikes or higher free-shipping thresholds are a red flag.
- 🧾 Check for vague fees. "Handling," "processing" or "import" charges may mask tariff costs.
- 👗 Look at the rack. Sticker-over-sticker, missing tags, or conflicting signs often mean recent changes.
- 💰 Compare totals. Focus on the out-the-door number, not just the item price.
