P&G faces $1B tariff shock, eyes US price hikes
Procter & Gamble to Raise Prices While Tackling a $1 Billion US Tariff Hit
In the week after the U.S. tariff forecast for the consumer‑goods giant rose to $1 billion, the company said it would implement modest price increases across a quarter of its U.S. product line. The decision comes as P&G reported quarterly earnings that climbed 15 percent to $3.6 billion, driven by a 2 percent rise in revenue to $20.9 billion.
Tariff Impact and Pricing Strategy
- $200 million of the tariff estimate is tied to imports from China.
- $200 million is linked to Canadian products.
- Remaining $600 million stems from shipments from outside North America.
Chief Financial Officer Andre Schulten highlighted the uncertainty of whether President Donald Trump will fall back on existing tariffs or negotiate new deals that could lower the U.S. levy load. He also noted that details about the just‑announced U.S.–Europe trade agreement are still incomplete, so the forecast remains tentative.
Price‑Increase Details
Schulten said P&G will raise prices on about one‑quarter of its U.S. offerings, which translates into an overall inflation of roughly 2 percent to 2.5 percent across the portfolio. The move aligns with the company’s long‑term strategy of elevating costs for premium items that deliver higher performance, such as premium detergents or electric toothbrushes.
“We believe the price adjustments are adequate,” Schulten remarked. “They are moderate and they are combined with innovation to improve the overall value for the consumer.”
Leadership Transition
On Monday night, P&G announced that CEO Jon Moeller will step down and that Chief Operating Officer Shailesh Jejurikar will take over as president on January 1, 2026. Jejurikar joined the company in 1989 and was promoted to the leadership team in 2014.
Moeller will transition to the role of P&G’s executive chairman. The shares of Procter & Gamble were flat around midday, reflecting the market’s cautious stance ahead of the pricing change.
