New York
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Procter & Gamble, the maker of several household staples including Tide detergent and Charmin toilet paper, is hiking prices because of President Donald Trump’s tariffs.
The company revealed in Tuesday’s earnings call that its profits will take a $1 billion hit because of tariffs, a larger cost the company originally projected in June. As a result, P&G will increase prices on about 25% of its products, going into effect next month.
P&G previously warned in April that it was going to increase prices due to tariffs.
CEO Jon Moeller said Tuesday a number of factors deflated consumer spending on its products, including “tariffs, inflation, interest rates, political and social divisiveness.”
The Pampers maker imports raw ingredients, packaging materials and some finished products into the US from China, while the vast majority – roughly 90% – of what it sells is produced domestically, the company has previously said.
The company announced in June it was slashing about 6% of its workforce over the next two years as part of a broader restructuring plan that includes eliminating some products in certain markets.
P&G joins a long list of well-known companies that are increasing prices because of Trump’s often erratic stance on tariffs. Nike, Walmart, Best Buy as well as car companies Ford and Subaru have all said they are raising prices.
