Procter & Gamble's Price Hike Strategy Amid Tariffs and Economic Uncertainty

Procter & Gamble is raising prices on new and improved products to counter costs from U.S.-China tariffs. The company's focus is on high-end offerings, despite consumer cutbacks due to economic volatility. P&G projects $5 billion growth potential in the U.S. with its strategic pricing approach.

Procter & Gamble is banking on the allure of premium-priced products like $380 electric toothbrushes and enhanced diapers to navigate economic challenges posed by the U.S.-China trade policies. By increasing prices, P&G aims to mitigate the impact of tariffs, with Chief Financial Officer Andre Schulten outlining the strategy.

The company's product lineup now includes innovative Venus razors and deeper-cleaning Tide pods, echoing tactics previously employed during the pandemic and inflationary periods. With Americans scaling back on non-essential purchases, P&G targets sustained demand for quality essentials that promise superior results.

Despite uncertainties in consumer spending linked to broader economic pressures, P&G is optimistic about a $5 billion growth opportunity in the U.S. market. The success of its premium Oral-B electric toothbrushes bolsters this outlook, supported by plans to launch new products across major brands.

(With inputs from agencies.)