Major consumer companies, including PepsiCo, Kimberly-Clark, and Procter & Gamble, are reducing their financial forecasts due to lower sales and profits expected in the coming months. The companies attribute this decline to rising anxiety among American shoppers over trade tensions with China and other global issues.
These concerns have led to increased costs for companies such as Kimberly-Clark, which estimates an additional $300 million in new expenses. Procter & Gamble has also warned that it may raise prices to offset these new costs.
Chipotle CEO Scott Boatwright noted that anxious shoppers are reducing their spending habits, particularly on restaurant visits, due to concerns about the economy.
Several consumer giants rely heavily on China for packaging materials and other supplies, which are now subject to tariffs imposed by foreign governments in retaliation. This has led to a decrease in sales at companies like Colgate-Palmolive.
According to a recent survey by the University of Michigan, consumers have become increasingly pessimistic about the US economy, with sentiment falling 8% compared to March and 32% compared to January. Economists attribute this decline to concerns over trade tensions, inflation, and personal finances.
Source: https://www.npr.org/2025/04/25/nx-s1-5375820/big-brands-tariffs-us-spending-consumers