In North America, Procter & Gamble recently announced price adjustments on about 25% of its products, which will go into effect in the next few months. It said the average increase will be roughly 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.
The global snacking giant Mondelēz, which is behind brands such as Oreo and Ritz, also announced 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.
Zaramella said the price of raw materials is rising, especially as it relates to cocoa.
Hershey, too, is seeing the effects of the spike in its essential ingredient. It said in a statement that its price adjustment with retail customers is not related to tariffs or trade policies but instead reflects “the reality of rising ingredient costs including the unprecedented cost of cocoa.”
Cocoa prices have skyrocketed 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.
The apparel sector is also feeling the pressure and warning of price hikes. The German sportswear giant Adidas said Wednesday that it might have to raise prices, in the United States only, because of the significant impact tariffs will have on the company’s cost of U.S. goods. Adidas 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.
Many more companies are also reporting dented profits due to Trump’s tariffs.
On Tuesday, Stanley Black & Decker said it expects to incur an $800 million annualized impact from policy changes that are tied to tariffs. And Conagra Brands said tariffs are likely to raise costs of goods sold by 3%, which would be an annual increase of more than $200 million, according to its CEO, Sean Connolly.
The auto industry seems to be making adjustments, as well. Elon Musk’s Tesla said costs as a result of tariffs have increased about $300 million, and General Motors said earnings before interest and taxes in this most recent quarter dropped by $1.1 billion, which it attributed to tariffs.
Ford said Wednesday that it sees up to a $3 billion impact from tariffs but expects to be able to offset $1 billion of that.
Evie Steele and Kayla Steinberg contributed.
