P&G Increases Prices Due to Tariffs and Changes in Consumer Behavior

• P&G is raising prices on a quarter of its products in the U.S.
• It is expected that tariffs will increase the company's spending by $1 billion.
• Consumers have become more cautious in their purchases.

The company Procter & Gamble, which is a major consumer goods manufacturer, announced the price increase on nearly a quarter of its products in the U.S. This decision is partly a consequence of rising spending due to tariffs imposed by the administration of President Donald Trump.

The assessment, presented on July 29, 2025, occurred after the appointment of Shailesh Jejurikar, the former chief operating officer, to the position of president and general director of the company, starting January 1, 2026. The previous general director John Moeller will serve as the executive vice president of legal affairs.

The price increases, which will take effect next month, average single-digit percentages. According to P&G's chief financial officer Andre Schulten, this increase will be accompanied by improvements in the products.

In the fourth quarter of 2025, the company noted that it would do everything possible to reduce spending related to tariffs, including changing the sourcing of supplies and product formulations to avoid tariffs. At the same time, the company expects that tariffs will increase its spending by approximately $1 billion to accommodate the fiscal year 2026.

According to the latest data, consumers have become more cautious in their purchases, including holding more on large packages and promotions. Schulten noted that consumers have become more selective in their purchasing behavior, striving to find favorable offers.

P&G also announced a net income of $3.62 billion, or $1.48 per share, for the quarter ending June 30, 2025, which exceeds the indicators of the previous year. It is expected that earnings per share for the current year will range from $6.83 to $7.09, which is lower than analysts' forecasts.

Tags: USA/Economy