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Household Brands Revamp Supply Chains to Tackle Tariff Woes

Summary

  • WD-40 decentralizes supply chain to reduce tariff impact
  • Clorox, Colgate-Palmolive, and P&G also modify operations
  • WD-40 boosts inventory and localizes manufacturing in China
Household Brands Revamp Supply Chains to Tackle Tariff Woes

In August 2025, a number of prominent household product manufacturers have been taking steps to adapt their supply chains and operations in response to the ongoing tariff challenges. WD-40, the maker of the iconic lubricant, has been at the forefront of these efforts.

According to WD-40's CEO Steve Brass, the company's diversified and decentralized supply chain has helped it minimize the effects of potential tariffs. By sourcing raw materials and manufacturing products closer to its customers and end users around the world, WD-40 has been able to avoid the full brunt of tariff-related disruptions. The company has also leveraged its local presence in China, where it is viewed as a domestic brand, to manufacture products for the Asian markets and sidestep retaliatory tariffs.

Beyond WD-40, other major brands like Clorox, Colgate-Palmolive, and Procter & Gamble have also been taking proactive measures. Clorox has tapped into alternative sourcing options, while Colgate-Palmolive and P&G have shifted production and initiated supply chain reorganizations to adapt to the changing trade landscape.

As a precautionary measure, WD-40 has increased its inventory levels in specific markets to reduce the immediate impact of tariffs, particularly in the Americas region, which accounts for 6% of its global business. These supply chain optimizations are expected to help the company reach its gross margin target of 55-56% a year earlier than initially planned.

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.

FAQ

WD-40 is diversifying its supply chain by sourcing raw materials and manufacturing products closer to its customers and end users around the world, which has helped the company minimize the effects of potential tariffs.
Clorox, Colgate-Palmolive, and Procter & Gamble have also been taking measures to adapt, such as tapping alternative sourcing, shifting production, and initiating supply chain reorganizations.
In China, WD-40 is manufacturing locally for Asian markets and is viewed as a domestic brand, allowing it to avoid retaliatory tariffs.

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