7 Brands Just Warned That Prices Are Going Up
Companies behind some of America’s best-known brands warn that tariffs will raise costs by hundreds of millions as Trump’s Friday deadline, when the White House is set to start imposing higher import taxes on foreign countries, looms. According to the brands, ranging from food and home goods companies to auto makers, the tariffs are finally forcing them to hike prices to minimize the profit loss they are or will be experiencing. Here are 7 brands that have just warned that prices are going up.
Procter & Gamble
Procter & Gamble is hiking prices on about 25% of its products, which will go into effect in the next few months. The average increase will be 2.5%, broadly in line with overall inflation. “These adjustments reflect a mix of factors, including higher raw-material and supply-chain costs, investments in product innovation and the impact of recently announced tariffs,” a spokesperson said.
Mondelēz
Mondelēz, the snacking giant behind brands such as Oreo and Ritz, will also be implementing incremental pricing to take effect in the coming months. “We are clearly at a point in time where we see inflation going up,” Chief Financial Officer Luca Zaramella said. One of the main forces behind the price hikes is the increasing price of raw materials is rising, especially cocoa. In a media briefing call on Tuesday, Chief Financial Officer Andre Schulten added that the increases will be “moderate,” “adequate,” and in line with “the typical inflation consumers would experience.”
Hershey
Hershey maintains that price adjustments they are making are not related to tariffs or trade policies but instead reflects “the reality of rising ingredient costs including the unprecedented cost of cocoa.” According to statistics, the price of cocoa has surged more than 165% over the last two years. For years, “we’ve worked hard to absorb these costs and continue to make 75% of our product portfolio available to consumers for under $4.00, ensuring that Hershey treats stay accessible and affordable for families everywhere,” the company said in a statement.
Adidas
Expect the prices of clothing to increase. German sportswear giant Adidas confirms it might have to raise prices. The company reported tariffs would add around 200 million euros ($231 million) in costs in the second half of this year. “What we can say is we will not be the price leaders. We will move slowly and see what is happening in the market,” CEO Bjørn Gulden said on an earnings call.
Stanley Black & Decker
Stanley Black & Decker said it expects to incur an $800 million annualized impact from policy changes tied to tariffs. According to finance chief Patrick Hallinan, that doesn’t include costs in connection with steps the company is taking to mitigate the effects of the levies.
Conagra Brand
Conagra Brands, the parent company of Marie Callender’s and Slim Jim, said tariffs are likely to raise costs of goods sold by 3%, which would be an annual increase of more than $200 million, per CEO, Sean Connolly.
Tesla
According to Tesla, costs tied to tariffs have increased by about $300 million. “While we are doing our best to manage these impacts, we are in an unpredictable environment on the tariff front,” finance chief Vaibhav Taneja told analysts and investors on Tesla’s earnings call last week.
