Tariffs Fuel Price Hikes as P&G Warns of Rising Costs for U.S. Families

Procter & Gamble (P&G), the world’s largest consumer goods company, announced it will raise prices on roughly a quarter of its U.S. products starting this month—another warning sign that tariffs imposed under former President Donald Trump are pushing everyday costs higher for American families.

The company said the increases, in the mid-single digits, are being implemented to offset the $1 billion in additional costs it expects to incur from tariffs in fiscal 2026. The changes will hit shelves in August, affecting household essentials from Bounty paper towels to Metamucil supplements. Major retailers like Walmart and Target have already been informed.

This follows Walmart’s own announcement in May that it, too, would raise prices due to the ongoing burden of tariffs.

While P&G posted stronger-than-expected fourth-quarter earnings, the positive results came largely from higher pricing rather than increased sales volume—signaling that American consumers are already paying more at checkout. The company sold about the same amount of products, which suggests shoppers might be buying less because of higher prices.

P&G’s Chief Financial Officer, Andre Schulten, acknowledged that price-conscious consumers are now more selective, opting for bulk purchases or searching for cheaper alternatives online. “The consumer clearly is more selective in terms of shopping behavior,” Schulten said during a call with reporters. “There is a desire to find value, to reduce out-of-pocket spending.”

Looking ahead, P&G expects sales growth to slow, forecasting just 1 to 5 percent growth in fiscal 2026—lower than analysts had anticipated. Global economic uncertainty, weakening consumer spending in the U.S. and Europe, and the lingering impact of tariffs are all expected to weigh on performance.

To adjust, P&G has launched a major restructuring plan that includes cutting 7,000 jobs and shedding underperforming brands over the next two years in an effort to improve efficiency. Prices rose 1 percent in the last quarter, and more increases are expected as cost pressures persist.

These tariff-driven price hikes disproportionately impact working families, especially those with lower incomes who spend a higher percentage of their earnings on everyday goods. As the economic strain deepens, companies like P&G are forced to pass costs on to consumers—raising concerns about long-term affordability and financial stability for millions of Americans. The message is clear: tariffs may be designed as economic tools, but their real-world impact is being felt at the grocery store and in family budgets across the country.