Tariffs continue to hang over companies as they report their latest financial results. Despite some tariffs being postponed, the picture remains uncertain, making it difficult for businesses and investors to assess any impact on costs and sales.
Companies from various industries, including food and beverage, pharmaceuticals, and household staples, are trying to gauge the potential effects of tariffs. A new poll by The Associated Press-NORC Center for Public Affairs Research shows that 6 in 10 U.S. adults are concerned about the cost of groceries and big purchases in the next few months.
Some notable companies’ responses include:
Procter & Gamble (P&G) is shifting sourcing and changing formulation to avoid duties, but CFO Andre Schulten expects prices to be passed on to consumers as early as July.
PepsiCo lowered its full-year earnings expectations due to increased costs from tariffs and a pullback in consumer spending.
Merck trimmed its earnings forecast for the year, citing $200 million in expected costs from implemented tariffs.
American Airlines withdrew its earnings forecast due to uncertainty over the economy, while Southwest Airlines is trimming its flight schedule and delaying construction projects.
Dow Chemical expects delays in purchases from businesses and consumers amid tariff-driven economic uncertainty.
As companies navigate this uncertain environment, they emphasize that consumer behavior plays a significant role. Uncertainty around the stock market, job security, and economic outlook affects consumer spending habits. The situation remains fluid, making it essential for businesses to adapt and respond accordingly.
Source: https://apnews.com/article/trump-tariffs-impact-pepsi-procter-gamble-prices-1d0f1da000f7823eeb852ff431997ea7