Will Dollar Tree Raise Prices Because of Tariffs? What We Know So Far

The storefront of a dollar tree on a sunny day

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One of the many reasons you probably love to shop at Dollar Tree is the selection of items that you can get for budget-friendly prices. After all, Dollar Tree is a discount store that can markdown prices and keep them that way, so long as the economy remains stable. However, with President Donald Trump’s tariff’s yo-yo-ing almost daily and one of the major targets being China, it’s hard to say if Dollar Tree can hold their price point since much of their supply chain is connected to the Chinese markets and production line.

On the other hand, it might not all be doom and gloom for Dollar Tree. In July 2025 Stockwits reported that Dollar Tree shares went up almost 8% in one day, showing the power the retailer has while the rest of the United States economy teeters on the brink. Find out below if Dollar Tree is at risk of raising its prices due to tariffs.

Why Dollar Tree Might Be Forced To Raise Prices

Dollar Tree is one of many American companies that relies on the purchasing and import of cheap goods made in other countries. If the tariffs really do go into full effect, as Trump continuously threatens, the cost to import what Dollar Tree stocks their shelves with could get passed on to their customers.

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“Low price retailers like Dollar Tree bring in a large portion of their inventory into the U.S from foreign countries and the newly proposed tariffs will put a lot of pressure on these company’s bottom line, forcing them to make tough decisions,” explained Vipin Porwal, founder and CEO at Smarty, an online shopping rewards app.

Kyle Peacock, founder at Peacock Tariff Consulting, does believe prices are set to rise. “Dollar Tree has already rolled out $1.50 to $7 items and plans continued expansion of higher price points in select stores. Tariffs are a direct driver of this more flexible pricing strategy,” Peacock said.

How Tariffs Might Impact Americans Shopping at Dollar Tree

Porwal went on to explain that millions of lower-income Americans rely on these discount stores for their everyday essentials. 

“If there is something you buy regularly and it is not perishable, you might want to stock up,” said Gabriella Santaniello, founder of A-Line Partners, a retail research company. “That said, prices are going up across all retailers so it’s difficult to avoid. Dollar Tree prices will still be among the lowest.”

“These consumers should expect smaller product sizes and fewer low-cost options in the near future and look for every possible opportunity to add savings to help meet their budgets, like taking advantage of shopping rewards wherever possible,” Porwal explained.

What the Data Suggests About Consumer Confidence

It’s not just those who shop at Dollar Tree that are concerned about tariffs and trade wars — it’s everyone in the United States who shops for their households. Porwal shared some Smarty data from July 2025 which showed that Americans have high awareness of tariffs, but the confidence in them working to their benefit is uneven. 

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The data showed 79% of respondents are at least somewhat familiar with current tariffs, yet only 28% feel very confident in knowing which products will be impacted. Another 71% believe tariffs will last either through 2025 or as long as Trump is in office and the issue has become politicized: trust in the administration’s tariff strategy is split 50/50.

This goes beyond Dollar Tree alone, with USA Today reporting that Walmart and Best Buy have already raised prices amidst the tariff announcements, leaving American consumers to wonder: which of their favorite retailers might soon become unaffordable?

“Dollar Tree has tools to avoid broad price increases on its core $1.25 items through vendor negotiations, specification changes, sourcing shifts and product pruning,” Peacock said. “But, it’s actively expanding and raising prices on its multi-price assortment and tariffs have accelerated that shift. Tariffs are fueling price changes at Dollar Tree, but not across the board.”

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