Procter & Gamble (P&G), the multinational consumer goods giant headquartered in Cincinnati, Ohio, has announced it will increase prices on approximately 25% of its U.S. product portfolio starting in August. The move—expected to affect major retail partners including Walmart and Target—comes as P&G faces mounting cost pressures attributed to tariffs imposed under the administration of former President Donald Trump.
According to P&G’s outgoing Chief Executive Officer, the company expects tariffs to result in a $1 billion impact on pre-tax profits in its new fiscal year. The CEO described the tariff policy as "inherently inflationary," citing increased importation costs for raw materials, packaging, and exports, especially to Canada. This environment, he explained, forces manufacturers to balance which cost burdens they can absorb and which must ultimately be passed on to consumers as higher prices (Yahoo Finance).
P&G’s Chief Financial Officer, Andre Schulten, noted that the company would endeavor to absorb some of the additional costs by focusing on cost reductions and innovation but acknowledged that increasing prices for shoppers was "unavoidable in many cases" (Associated Press).
The company’s price increases will, on average, be in the mid-single digit percentages. This decision follows a period in which P&G and other consumer products companies, including Nestlé and PepsiCo, initially absorbed tariff-related expenses—only to turn to price hikes as inventories fell and inflation became more pronounced across raw material categories.
In its most recent earnings report, P&G disclosed that revenue exceeded Wall Street expectations in the fourth fiscal quarter, climbing to $20.89 billion. Additionally, core earnings per share reached $1.48, and organic sales grew approximately 2% in fiscal 2025, driven largely by higher pricing and continued demand for household staples. Despite these better-than-anticipated results, P&G offered mixed guidance for its upcoming fiscal year. Executives forecasted full-year sales growth ranging from unchanged to a slight increase, a projection that fell short of some analyst expectations (Reuters).
Shoppers in the United States have responded cautiously to rising prices, with an increasing number opting for bulk buying and more affordable alternatives. "More consumers are trading down to cheaper options," company executives observed, as household budgets remain tight in the face of economic uncertainty.
As part of its response to the challenging tariff landscape, P&G has outlined a restructuring plan that includes exiting select brands and eliminating approximately 7,000 jobs over the next two years. These steps are intended to offset growing costs, which are projected to rise by $1 billion before taxes in fiscal 2026 due to tariff exposure (Reuters).
In a significant leadership shift, P&G announced that Shailesh Jejurikar, who has spent several decades at the company and led key divisions such as fabric care, will become Chief Executive Officer on January 1, 2026. The transition comes at a pivotal time as the company seeks to adapt to cost pressures, changing consumer behaviors, and slower projected growth (Reuters).
P&G’s shares have fallen approximately 6% year-to-date, reflecting investor concerns about the company’s growth prospects amid the ongoing impact of tariffs and leadership changes. The company’s experiences highlight broader economic trends, as inflationary impacts from tariffs ripple throughout U.S. consumer goods sectors. Analysts continue to scrutinize whether price increases and cost-control measures will be sufficient to protect margins while maintaining consumer loyalty in a rapidly changing retail environment (Reuters).
As P&G navigates a challenging year ahead, it is preparing for ongoing fluctuations in demand and navigating the consequences of international trade policies—factors that will shape the consumer experience and the company’s financial performance in the months to come.