Major firms cut earnings forecasts as Trump’s tariffs are posed to impact everyday product prices — here’s how it could affect your wallet

Procter & Gamble, PepsiCo, and LG Warn of Price Hikes Due to Tariffs

Major companies like Procter & Gamble, PepsiCo, and LG have recently revised their forecasts and issued warnings about potential price hikes on everyday products as a result of President Trump’s tariffs.

Procter & Gamble, known for brands like Tide, Charmin, Bounty, and Crest, now expects flat sales growth compared to their previous projection of a 2% to 4% increase. The company’s CFO, Andre Schulten, emphasized the need to implement measures to counter the impact of tariffs on their costs and profits.

Price increases and cost-cutting initiatives are being considered by Procter & Gamble as alternative strategies, given the complexities of changing raw material sourcing from China. Schulten mentioned that the price hikes could be implemented in the upcoming fiscal year if a trade deal is not reached.

P&G imports materials from China but manufactures the majority of its products domestically. The company has been affected by the tariffs imposed on Chinese imports by President Trump, leading to a potential rise in prices for consumers.

Similarly, PepsiCo has also adjusted its profit forecast due to heightened trade tensions and increased production costs. The company, known for brands like Lay’s, Gatorade, and Quaker, anticipates challenges in its supply chain operations.

LG, a South Korean electronics and home appliance manufacturer, is considering price hikes and production shifts to counter the impact of tariffs. The company is evaluating the possibility of moving the manufacturing of some appliances to its Tennessee factory.

As trade tensions persist and tariffs continue to affect global supply chains, companies like Procter & Gamble, PepsiCo, and LG are bracing for potential challenges ahead.

Original article published on New York Post