According to Cailianshe on April 25, on Thursday, US household consumer goods giant Procter & Gamble said that even under the influence of Trump's high tariffs, it is difficult for P&G to transfer its raw materials and packaging materials procurement business from China. Therefore, Procter & Gamble can only increase the price of some products to make up for the impact of Trump's tariffs on the cost of its products.

According to CCTV News, Procter & Gamble currently expects total net sales in fiscal 2025 to be roughly the same as the previous fiscal year, far below the previous growth target of 2% to 4%. In addition, as the company's largest market, consumer sentiment is deteriorating, and Procter & Gamble noticed that US consumers have significantly reduced their spending in February and March.

Procter & Gamble will increase significantly

Only rely on price increases to fight tariffs

Procter & Gamble is the world's largest manufacturer of household consumer goods, while the U.S. market accounts for about 52% of P&G's total sales. Therefore, Procter & Gamble is also often used as a barometer for the consumer goods industry.

The latest financial report shows that sales in the third quarter of fiscal year 2025 were US$19.8 billion, a year-on-year decrease of 2.0%, lower than market expectations; adjusted earnings per share was US$1.54, slightly higher than analysts' generally expected US$1.53.

Against the backdrop of increasingly unclear tariff policies, Procter & Gamble has significantly lowered its annual sales and profit expectations, and expects annual organic sales to grow by about 2% year-on-year. That increase was lower than the company's forecast in January, when the company expected sales to rise by 3% to 5%.

"We achieved moderate organic sales and earnings per share growth in the quarter amid a challenging and volatile consumer market and geopolitical environment. We are appropriately adjusting our near-term outlook to reflect potential market conditions," said Jon Moller, CEO of Procter & Gamble.

"We will have to use all means to mitigate the impact of tariffs on our cost structure and performance," said Procter & Gamble Chief Financial Officer Andre Schulten on the conference call.

According to a P&G spokesperson, although the vast majority of the products (about 90%) sold by P&G in the United States are produced domestically, some of its raw materials, packaging materials and finished products are imported from China.

Schulten said that although China accounts for only a little over 10% of its import exposure, the 145% tariff has greatly affected it.

He predicts that the impact of Trump's tariffs on China on P&G's U.S. goods cost will be about $1 billion to $1.5 billion per year. In 2024, the company's sales cost was US$40.85 billion.

Schulten said that in the short term, it will be complicated and difficult to change the practice of purchasing raw materials from China, mainly because of the lack of alternative options for P&G. Since orders cannot be easily transferred out of China, P&G can only rely on price increases to deal with tariffs.

P&G said that under the influence of Trump tariffs, P&G will sell new products at higher prices and seek to increase the prices of some existing products, while planning to innovate on new products such as Crest Whitening Toothpaste and Tide Evo Laundry Capsules. Schulten said it was too early to speculate how much pricing P&G will take, and the company is currently planning for the next fiscal year starting in July.

P&G's market strategy also reveals its forecast for the future consumption patterns of American consumers: American consumers are expected to reduce optional consumption such as video games and clothing at a time when they face higher tariffs and recession risks, but will still have to spend more money on essential consumer goods such as tableware and laundry.

In the secondary market, on April 24 local time, Procter & Gamble's stock price fell by more than 5%. As of the closing, it fell by 3.74%, and the stock price was US$159.53.

Increased uncertainty

Many major U.S. companies cut revenue expectations

As the US government's tariff policies have brought many uncertainties to the US and the world economy, on the 24th local time, many large American companies, including Procter & Gamble, adjusted their revenue and profit expectations.

Although the quarterly results released on the 24th exceeded expectations, global toy giant Hasbro issued a warning on the earnings call that if the U.S. government maintains current tariff policies, the company's operations may cause $300 million in losses in 2025 and profits may be reduced by up to $180 million.

PepsiCo lowered its annual profit expectations on the 24th and warned that the U.S. government tariff policy will increase the company's production costs and add more uncertainty.

American Airlines lowered its financial expectations for 2025 on the 24th. American Airlines CEO Robert Isom said that U.S. economic uncertainty may put pressure on non-essential spending such as travel, and American Airlines' first-quarter results and second-quarter performance outlook will be affected.

Major retailers such as Walmart

Warn that tariff policies will raise prices

The US government's tariff policies have begun to cause destructive consequences in various industries in the United States, causing concerns from all walks of life. On the 23rd local time, according to the Axios news website in the United States, sources said that major U.S. retailers Walmart, Target Department Store and Home Depot recently issued a warning on the Trump administration's tariff policies.

It is reported that US President Trump recently held a meeting with major U.S. retailers at the White House, which aims to discuss how to alleviate the destructive impact of current U.S. tariff policies on global supply chains and to appease U.S. consumers' uneasiness about the imposition of tariffs. The CEOs of Walmart, Target and Home Depot have issued a blunt warning to Trump that their tariffs and trade policies may disrupt supply chains, raise prices, and leave Americans empty. At the same time, the chaos caused by tariff policies may become apparent in two weeks.

The report pointed out that U.S. companies and investors are beginning to worry that U.S. tariff policies "worst-case scenarios." Since the announcement of the U.S. tariff policy, most of the shares of major U.S. retailers have fallen. Before the tariff policy came into full effect, Americans rushed to buy electronic products and home appliances and other goods. According to a recent report by the American Consumer News and Business Channel, the National Federation of Retailers said that the U.S. tariff policy will cause harm to U.S. businesses and families. The higher the tariffs, the higher the anxiety and uncertainty faced by U.S. businesses and families.

On the afternoon of April 21 local time, Trump met with major retailers at the White House, and the companies participating in the meeting included Walmart, Home Depot, Lowe's and Target.

Since the announcement of the "peer-to-peer tariffs", most of the shares of major U.S. retailers have fallen. Before the tariff policy came into full effect, Americans rushed to buy electronic products and home appliances and other goods, and the main exporter of these goods was China.

The meeting was reportedly intended to discuss how to alleviate the destructive impact of current comprehensive tariff policies on global supply chains and the uneasiness of U.S. consumers over comprehensive tariffs.

US tariff policy hits the logistics industry hard

Cargo volume is expected to plummet 44% in Long Beach Port, California

The Port of Long Beach, located in southern California, USA, is one of the largest container ports in the United States. Recently, due to the influence of US tariff policies, the recent reduction in cargo ships from Long Beach Port have been significantly reduced, and a large number of people in related industries may face unemployment, and the local economy may suffer a heavy blow.

Mario Cordero, CEO of the Port of Long Beach, California: The number of ships expected to arrive from May 4 to May 10 is down 44% compared with the same period last year, a very large decline. We can judge that the volume of goods arriving in the second and third quarters of this year will drop sharply. From the perspective of port managers, we believe that the less cargo, the fewer jobs will be. In the Greater Los Angeles area, one in nine jobs come from port business, and 2.6 million jobs in the U.S. industrial chain are business activities directly or indirectly from Long Beach Port.

Logistics and warehousing businesses closely related to Long Beach Port have also been affected. A local real estate developer said some original warehouse rental agreements were forced to terminate. A person in charge of a truck transport team operating in the Port of Long Beach said he was very anxious and worried that the team members would lose their livelihoods.

Long Beach Port Real Estate Developer Jennisson: There is a new situation recently, that is, our warehouse rental agreements at multiple industrial parks in the Inlan Pyre area and Nanwan Town have been terminated.

Gulian, head of Long Beach Port Terminal Transportation Company: (Tariffs) bring stress and anxiety, and the situation has become very serious. I have never seen this situation before, and the operation is currently very difficult. In the past, everyone had a job to do to make a living, but now (tariffs) have made the situation very bad.

According to the CBS report on the 22nd, the latest report shows that due to the impact of US tariff policies, the Los Angeles area of ​​California may lose about $500 billion in revenue, and the jobs of 2 million related personnel are threatened.

US officials warn:

High tariffs may cause unemployment to soar

On April 24, local time, Federal Reserve Director Christopher Waller warned that the trade war triggered by Trump may soon lead to an increase in unemployment.

It is reported that the current employment situation in the United States is at risk because other countries impose retaliatory tariffs on US goods. Waller said that if the tariffs remain in place, there will be no significant impact on the U.S. economy by July. Businesses could start layoffs if the Trump administration resumes radical tariff levels, and he would support rate cuts if unemployment rose sharply.

Waller stressed that he expects more rate cuts soon if the labor market deteriorates seriously.

American debt is under pressure

Currently, the surge in credit card debt has put many Americans in financial difficulties that are hard to escape. As the United States launches a tariff war on the world, rising prices will further intensify the pressure on people to repay debts.

According to the credit card report released by US Yinsu.com in April this year, in November last year, 48% of American people holding credit cards were unable to pay off their debts during the current payment period and needed to postpone repayment. This figure was 44% in January last year.

Among the Americans who are unable to pay off their credit card debts in the current period, 53% have been in debt for more than a year.

Data from the Federal Reserve Bank of New York showed that as of the end of last year, the total U.S. credit card debt hit a record high, reaching an astonishing $1.21 trillion, a 4% increase from the previous year. On average, each U.S. household has about $6,600 in credit card debt.

Ted Rossman, senior industry analyst at US Silver Rate Network: If you repay the minimum repayment at an average rate of about 20%, you will be in debt for 18 years and you will have to pay nearly $10,000 in interest.

Driven by high consumption culture, many Americans have gradually entered the debt trap. They are carrying huge debts and even have to make a living by "supporting debts with debts" . Many American experts are worried that the US government's tariff policy will lead to rising prices, which may make Americans' debt problems worse, and more and more Americans' debts will be out of control.

Ted Rossman, senior industry analyst at US SilverRoad.com, said that people's income is being squeezed by various expenses such as housing costs, medical care, food, and parenting, and the room for disposal is getting smaller and smaller.

Rod Griffin, an expert at the financial consulting firm Eberman Group: Out of control refers to the debt that affects you to pay basic necessities for daily life. For example, you have debts that will make you unable to pay for food or daily bills, or you can only pay one of them; there are people who can repay the loan, but they only pay the minimum amount. This will lead to their continued increase in debt and fall into a deeper and deeper debt vortex.

South Korean workers worry about their livelihoods

Hyundai Motor Group is South Korea's largest auto exporter to the United States. On March 24, two days before the United States announced an additional 25% tariff on imported cars, executives of Hyundai Motor Group visited the White House and announced that they would invest $21 billion in the United States in the next four years, including its Hyundai Iron & Steel Company invested $5.8 billion to build a new factory in Louisiana to supply steel to its auto plants in Alabama and Georgia.

News of huge investments in the United States has exacerbated concerns among employees of Hyundai Iron Manufacturing Company. In Incheon, South Korea, a factory of a modern ironmaking company has been shut down.

Kang Duxun has worked in the Incheon factory of Hyundai Ironmaking for 15 years. The company recently stated that the factory will be shut down for one month and will start the voluntary resignation process to dismiss employees.

Jiang Duxun, an employee of Hyundai Iron Manufacturing Company: In the past, we often stopped work for three or four days and then resumed production. But this time, everyone was very anxious.

In recent years, modern ironmaking companies have suffered multiple blows such as the sluggish domestic construction market, competition for foreign steel products and trade union strikes. Last month, the US policy of imposing a 25% tariff on imported steel and aluminum products came into effect, further affecting South Korea's steel exports to the United States, making the business environment of Hyundai Iron Manufacturing Company worsen. Hyundai Iron Manufacturing Company had to declare an "emergency management" state, taking a series of measures such as reducing executive salaries, implementing employee voluntary retirement plans and reducing the operating scale of some factories to save costs.

Under such circumstances, Hyundai's announcement of investment plans in the United States has made workers in South Korea unhappy. Investors are also skeptical of Hyundai Motor Group's investment plan.

They questioned whether investment in the United States would allow Hyundai to obtain tariff exemptions, how this overseas investment would be financed, and whether Hyundai could ensure that there were enough customers to digest overseas production capacity. Analysts warn that the huge U.S. investment could further increase financial pressure on Hyundai Ironmaking.

Hyundai Iron & Steel has fallen 22% since the announcement of its investment plan in the United States. During the same period, Hyundai Motor Group's share price also fell 12%.

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