P&G Raises Prices on Quarter Products Amid $1B Tariff Costs

Procter & Gamble announced it will raise prices on about 25% of its products in the U.S. starting next month, citing higher costs driven by President Donald Trump's tariffs, which are expected to increase the company's costs by approximately $1 billion before tax for the 2026 fiscal year. The price hikes, mostly in the mid-single digits, will be combined with improved product features to help offset these costs, as consumers have become more selective and value-conscious amid economic volatility and tariff-related uncertainties. P&G's leadership highlighted that while the company has taken measures to reduce tariff impact by shifting sourcing and changing formulations, passing on some of the cost to consumers has become necessary. The company is also focusing on driving growth in areas like value-priced diapers and skincare, responding to shifts in shopping behavior such as buying larger pack sizes and seeking discounts. This move by P&G reflects a broader trend among major companies like Nike, Walmart, and Ford, which have also raised prices due to tariffs and economic pressures. Despite these challenges, P&G reported strong quarterly earnings and continues to adapt amid cautious consumer spending and ongoing geopolitical and economic factors.