According to a Reuters report, Fast Retailing, the parent company of Japan's Uniqlo, revealed on July 10 that it plans to increase the prices of certain products later this year to offset pressures caused by US tariff policies. Additionally, US President Donald Trump has threatened to impose a 50% tariff on Brazilian imports, which foreign media predict will lead to significant price hikes for American staples like coffee, orange juice, and hamburgers.
Fast Retailing's recently published financial report showed that its operating profit as of May stood at 146.7 billion yen, marking a 1.4% year-on-year increase but falling short of market expectations of 153.8 billion yen. Fast Retailing's Chief Financial Officer Takeshi Okazaki noted that the company's performance is expected to be significantly impacted by tariffs starting from the 2025 autumn and winter seasons. To manage this, he stated that the company would raise prices "wherever possible."
Under Trump's updated tariff rates, major garment-producing countries like Sri Lanka face a 30% tariff, while Vietnam faces a 20% tariff. Goods shipped via third-party countries would encounter an even steeper rate of 40%.
Meanwhile, the US is the world's largest coffee consumer, with approximately one-third of its coffee beans imported from Brazil last year. More than half of the orange juice on US shelves is also sourced from Brazil.
Analysts warn that imposing a 50% tariff on Brazilian goods would sharply increase the cost of hamburgers in the US. Between January and May this year, the US imported over 175,000 tons of beef from Brazil—double the amount imported during the same period last year. This imported beef is often mixed with domestic beef to produce hamburger patties.
(Source: Ta Kung Pao)
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