How are U.S. companies responding to Trump's trade war?

Companies are passing on the costs of new tariffs to American consumers, with P&G raising prices on 25% of its U.S. products by mid-single digits.

What impact will the price hikes have on consumers?

The price hikes are expected to deepen investor worries and hit Main Street hard, as inflation fully sets in later this year or early next.

How have consumer brands performed since the tariff announcements?

Shares of major consumer brands like P&G, Nestle, and Kimberly-Clark have declined significantly since Trump's tariff announcements in April 2022, even as the broader stock market has soared.

Home / Business and Economy / Brands Buckle Under Tariffs: Household Staples Face Steep Price Increases

Brands Buckle Under Tariffs: Household Staples Face Steep Price Increases

29 Jul

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Summary

P&G to raise prices on 25% of U.S. products in mid-single digits
Consumer goods, food, and drink companies struggle with lackluster sales
Inflation expected to hit in Q4 2022 or Q1 2023 as inventory runs out

Brands Buckle Under Tariffs: Household Staples Face Steep Price Increases

In the wake of President Trump's trade war, major U.S. consumer brands are now passing on the costs of new tariffs to American shoppers. Household goods giant Procter & Gamble (P&G) has announced it will raise prices on about a quarter of its products in the U.S. by mid-single digits starting next week. This comes as consumer goods, food, and drink companies have grappled with lackluster sales since the pandemic, as shoppers have balked at increasingly expensive name-brand packaged goods.

The price hikes are part of a broader trend, as companies like Walmart, Amazon, and Best Buy are also expected to pass along higher costs to consumers. Economists and analysts predict that the full impact of tariffs on inflation won't be felt until the fourth quarter of 2022 or the first quarter of 2023, as companies have managed to delay hiking prices by drawing down inventory.

However, the pain is already being felt by investors, with shares of major consumer brands like P&G, Nestle, and Kimberly-Clark declining significantly since Trump's tariff announcements in April 2022, even as the broader stock market has soared. As the squeeze on household budgets continues, the fallout from the trade war is set to hit Main Street hard in the coming months.

Disclaimer: This story has been auto-aggregated and auto-summarised by a computer program. This story has not been edited or created by the Feedzop team.