Major global retailers like Birkenstock and Pandora are adjusting their pricing strategies in response to new U.S. tariffs. Rather than raising prices only in the U.S., they are considering small price increases across all markets. This helps avoid steep U.S.-only price hikes that could hurt sales or attract political criticism.

However, this approach may lead to inflation in countries like those in the EU and the UK, even though they aren’t directly impacted by the tariffs. Central banks are concerned that this strategy could slow efforts to stabilize prices.

Some firms, like Adidas, have rejected global price increases, while others may use the situation to raise prices more than necessary and boost profits, as seen during the pandemic. Economists warn that consumers won’t easily know whether price hikes are justified by tariffs, giving companies room to inflate prices under the radar.

Overall, this global pricing tactic might protect U.S. sales but risks spreading inflation globally and reducing price transparency for consumers.