P&G to Raise Prices on Quarter of U.S. Products as Trump Tariffs Bite

Procter & Gamble is hiking prices on about 25% of its U.S. product lineup starting this month, citing ballooning costs tied to tariffs under President Donald Trump’s trade policy.

The consumer goods titan made the announcement Tuesday alongside its quarterly earnings report and news that Shailesh Jejurikar will take over as CEO — stepping in at a turbulent moment for the company and the broader retail landscape.

P&G, which makes everything from Pampers to Tide, said the price increases, in the mid-single-digit range, have already been communicated to retail giants like Walmart and Target. Shoppers will start seeing the effects on shelves in August.

The move comes as companies across the board adjust to the financial strain caused by Trump’s tariff regime. Walmart also warned in May that it would have to push prices higher to absorb similar pressures.

The Cincinnati-based company posted fourth-quarter revenue of $20.89 billion, edging past expectations. Organic sales rose by 2% for the full fiscal year, driven largely by price increases and steady demand for pantry staples. But growth is expected to decelerate in the months ahead.

Looking ahead to fiscal 2026, P&G is forecasting net sales growth between 1% and 5% — mostly under analyst expectations. CFO Andre Schulten pointed to a pullback in consumer spending both in the U.S. and Europe, blaming geopolitical uncertainty and tough economic conditions.

“The consumer clearly is more selective,” Schulten told reporters. “We’re seeing people shift to bigger packs, bulk buying at club stores or seeking better deals online and at big box retailers.”

That’s especially true for lower-income shoppers trying to stretch tighter household budgets, a trend echoed last week by Nestlé, which noted sluggish North American sales.

Still, some analysts saw a silver lining. “Given the immense pressure put on U.S. consumers in particular, the organic growth is a very good sign that long-term earnings projections should hold up,” said Brian Mulberry at Zacks Investment Management.

P&G estimates that tariffs will cost the company roughly $1 billion before tax in fiscal 2026, a figure consistent with previous projections.

To offset those costs, the company launched a restructuring effort in June — shedding brands and slashing about 7,000 jobs over the next two years.

Despite raising prices 1% in the latest quarter, sales volumes held flat. For fiscal 2026, P&G expects core earnings per share between $6.83 and $7.09 — roughly in line with Wall Street forecasts.

The company’s stock is down 5.15% year-to-date and slipped another 0.5% over the last five days.

With input from Al Jazeera