Procter & Gamble to Increase Prices in Part Due to Tariffs/ Newslooks/ WASHINGTON/ J. Mansour/ Morning Edition/ Procter & Gamble will raise prices on roughly 25% of its U.S. products starting in August, citing the impact of President Trump’s tariffs. The company expects to absorb about $1 billion in tariff-related costs in fiscal 2026. Despite solid earnings, its outlook for next year came in below analyst expectations.
P&G Tariff Price Hikes – Quick Looks
- P&G to raise prices on one-quarter of U.S. products
- Increases will begin in August, averaging mid-single digits
- Price hikes tied to $1 billion in new tariff costs
- Trump’s tariffs blamed for increased production and supply expenses
- New CEO Shailesh Jejurikar to take over January 1, 2026
- Outgoing CEO Jon Moeller will remain as executive chairman
- Customers now buying in bulk, waiting longer between purchases
- P&G’s Q4 net income: $3.62B, up from $3.14B last year
- EPS at $1.48, beating analysts’ $1.42 expectations
- FY 2026 EPS guidance: $6.83–$7.09, below Wall Street’s $7.23 forecast
- Sales grew to $20.89B, matching analyst estimates
Deep Look: Procter & Gamble to Raise U.S. Prices as Trump Tariffs Drive Up Costs
NEW YORK — July 29, 2025
Procter & Gamble will raise prices on about 25% of its U.S. product line beginning next month, as the consumer goods giant confronts higher costs caused by the Trump administration’s renewed trade tariffs.
The announcement came as part of the company’s fiscal fourth-quarter earnings report, where P&G also revealed a cautious outlook for the upcoming fiscal year. Executives said tariffs alone are expected to add $1 billion in pre-tax expenses to their 2026 cost structure.
Tariff-Driven Cost Increases to Hit Shoppers
The new price hikes — averaging in the mid-single digit percentage range — will impact a variety of household staples, including Tide detergent, Charmin toilet paper, and Crest toothpaste, according to Chief Financial Officer Andre Schulten.
While P&G has attempted to absorb costs through operational adjustments such as sourcing changes and reformulations, the company now acknowledges it must pass along a portion of the financial burden to consumers.
“We’ve done what we can, but costs are still climbing. We have no choice but to adjust pricing,” Schulten said Tuesday on a media call.
In April, the company hinted at future price increases as it evaluated the impact of President Donald Trump’s expansive tariffs, which have affected raw materials and imported goods used across its supply chain.
Consumer Behavior Reflects Economic Caution
The price hikes come at a time when P&G is seeing noticeable shifts in shopper behavior. More consumers are waiting longer between purchases, reaching into pantry reserves, and favoring bulk buys and promotional deals.
“The consumer is more selective in terms of shopping behavior,” Schulten noted. “They’re searching for value over frequency.”
Despite this, P&G believes that combining higher prices with product upgrades will help retain customer loyalty. For example, in its Luvs baby care line, the company implemented price increases after improving product features — and still gained market share.
Leadership Change at P&G
Tuesday’s earnings release also included news of a leadership transition. Shailesh Jejurikar, the current Chief Operating Officer, will become President and CEO on January 1, 2026, replacing Jon Moeller, who has served in the role since 2021.
Moeller will stay on as Executive Chairman, ensuring continuity during a time of economic and operational complexity.
“Shailesh has been instrumental in our transformation efforts,” said Moeller. “He’s the right leader for P&G’s next phase.”
Q4 Earnings Beat Estimates — But Outlook Trails
For the fiscal fourth quarter ending June 30, P&G reported a net income of $3.62 billion, or $1.48 per share — comfortably beating analysts’ projections of $1.42, according to FactSet.
Revenue came in at $20.89 billion, narrowly up from $20.53 billion the previous year and in line with Wall Street estimates.
Despite the strong Q4 performance, P&G’s forecast for fiscal 2026 was more conservative. It projected earnings per share between $6.83 and $7.09, under the $7.23 that analysts had anticipated. Sales are expected to grow between 1% and 5%.
Navigating a Volatile Consumer Market
P&G joins other companies in grappling with increasing production costs, evolving consumer behavior, and global economic uncertainty. As the impact of trade policies continues to reverberate across industries, pricing strategies and product value will be central to maintaining brand strength and shareholder confidence.
