P&G Considers Raising Prices on Household Staples Due to Trump's Import Tariffs

A senior executive of the U.S. consumer goods maker Procter & Gamble said on the 22nd that if Trump imposes new tariffs that increase import costs, Procter & Gamble will again consider raising prices on household staples such as Tide detergent.

"Whatever the government decides to do, we can deal with it," said Andre Schulten, P&G's chief financial officer. He also said the company will first offset possible tariffs by cutting costs. "And the losses we can't make up through productivity may lead to price increases."

P&G's sales volume rose in the fourth quarter of 2024, while the company's global dishwashing liquid, laundry detergent and toilet paper product prices remained stable.

Investors view the company as a top operator in the highly competitive consumer goods industry. It buys inputs such as chemicals, razor blades and small electronics from around the world and produces final products closer to consumers in local factories.

In the past few years, P&G has frequently raised prices in the face of rising fuel and labor costs. Trump's proposed new round of tariffs - which may first target Mexico and Canada - may further increase these costs.

"I think it's still a risk," said Michael Ashley Schulman, chief investment officer at P&G investor Running Point Capital. "It's hard to quantify how much of the tariffs they can pass on to consumers."

The company has overhauled its Gillette-brand razor blade supply chain over the past four years, a move that could cushion its profit margins under new tariffs. P&G rival Edgewell also told Reuters earlier this year that it was seeking to secure a supply of Chinese sunscreen chemicals before tariffs hit.

Schulten said P&G also has "formulation flexibility," meaning it can adjust the ingredients in its products if they become too expensive or unavailable due to tariffs.

Schulten added that P&G has invested $6 billion in U.S. manufacturing over the past six years as it grapples with a supply chain crisis following the COVID-19 pandemic.