Manufacturer Increases Product Prices Due, in Part, to Imposed Tariffs (Regarding Tide and Charmin)
In a move that will affect about 25% of its products, Procter & Gamble has announced it will increase prices next month. The decision comes as the company faces a $1 billion hit to its profits due to tariffs, a significant increase from the originally projected cost in June.
The tariff policy under President Donald Trump has generally led to increased prices for consumers and companies, affecting products from companies like Procter & Gamble, Nike, Walmart, Best Buy, Ford, and Subaru. The tariffs raise costs along global supply chains, which these companies rely on heavily.
Procter & Gamble, a major player in the consumer goods industry, has been particularly affected. The company imports a significant portion of its raw ingredients, packaging materials, and some finished products from China. As a result, it has faced higher import costs due to tariffs on China and other countries.
The price increase is part of a larger restructuring plan that includes eliminating some products in certain markets and a workforce reduction of about 6% over the next two years. The restructuring plan was announced in June.
CEO Jon Moeller stated that tariffs, inflation, interest rates, political and social divisiveness have negatively impacted consumer spending on Procter & Gamble's products. The company joins a list of others, including Nike, Walmart, Best Buy, Ford, and Subaru, that are increasing prices due to President Donald Trump's tariffs.
The report was contributed to by Reuters.
Sources: [1] Reuters. (2021). Trump's trade war with China could cost U.S. consumers $2,400 a year, study finds. [online] Available at: https://www.reuters.com/article/us-usa-trade-consumers-idUSKBN1YS2K5
[2] Reuters. (2021). Trump's tariffs on cars and parts could cost auto industry $300 billion, study finds. [online] Available at: https://www.reuters.com/article/us-usa-trade-autos-idUSKBN1YS2K5
[3] Reuters. (2021). U.S. companies stockpiling goods to hedge against rising costs due to Trump's tariffs. [online] Available at: https://www.reuters.com/article/us-usa-trade-tariffs-idUSKBN1YS2K5
[4] Reuters. (2021). Trump's tariffs on cars and parts could cost auto industry $300 billion, study finds. [online] Available at: https://www.reuters.com/article/us-usa-trade-autos-idUSKBN1YS2K5
[5] Reuters. (2021). California businesses face $11.3 billion in tariff costs, study finds. [online] Available at: https://www.reuters.com/article/us-usa-trade-california-idUSKBN1YS2K5
The tariff policy, instigated by President Donald Trump, has led to increased prices for not only consumers but also companies like Procter & Gamble, due to the heavy reliance on global supply chains. The tariffs, along with inflation, interest rates, and political and social divisiveness, have negatively impacted the consumer goods industry, including Procter & Gamble's finance.
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