Trade tensions are putting extra pressure on companies across the U.S., and the consumer goods industry is feeling the pinch in real time. Consumer spending, which makes up nearly two-thirds of all economic activity in the U.S., is growing by just 1.4%, its slowest pace since the pandemic.
For consumer staples giant Procter & Gamble (PG), the company’s recent fourth-quarter results made the impact clear: It is about to raise prices on a quarter of its U.S. lineup, mainly because of the latest round of tariffs. Management has already warned that these tariffs will push up costs by about $1 billion before tax in fiscal 2026. According to CFO Andre Schulten, even after P&G cuts costs internally, part of this extra burden will still show up on store shelves.
