Tariffs Push Prices Higher — Straining Families’ Budgets

Procter & Gamble (P&G), the world’s largest maker of household goods, announced it will raise prices on about one-quarter of the items it sells in the U.S. starting this August. The reason? Tariffs—extra costs placed on imports during the Trump administration—are now forcing companies to pass those expenses on to everyday shoppers.

This means items many families depend on, like Bounty paper towels and Metamucil supplements, will soon cost more. 

P&G is facing nearly $1 billion in added costs next year because of these tariffs. And they’re not alone. Walmart recently said it, too, would have to raise prices due to these same rising costs.

While P&G’s recent profits look strong on paper, much of that success came from charging higher prices—not from selling more products. In fact, the number of items sold stayed the same, showing that many shoppers may already be cutting back because they simply can’t afford more.

P&G’s top financial officer, Andre Schulten, said more people are looking for value—buying in bulk, shopping online, or switching to cheaper brands. “The consumer clearly is more selective in terms of shopping behavior,” he explained.

Looking forward, P&G expects slower growth in 2026, citing tough economic conditions in both the U.S. and Europe. To cope, the company plans to cut 7,000 jobs and drop some of its brands to stay afloat.

These price increases hit working families the hardest, especially in our Black communities where many households are already stretching every dollar. Families with lower incomes spend a bigger share of their money on basics like soap, paper goods, and medicine—so even small price jumps make a big impact.