Price Hikes On Horizon As P&G And PepsiCo Cut Outlooks Amid Tariff Storm

The tariff tsunami has finally crashed into America’s shopping carts. Consumer giants P&GPG

and PepsiCoPEP

unveiled Q1 earnings yesterday, cutting outlooks as sales declined — sending their stocks tumbling 3.74% and 4.89%, respectively, as the post-Liberation Day fallout creates serious headwinds for everyday essentials.

• P&G’s revenue dropped 2% to $19.78B as the Tide and Charmin maker now expects flat sales in 2025 instead of its previously forecasted 2-4% growth — warning that price hikes are “likely” in the coming fiscal year.
• PepsiCo reported a 1.8% revenue decline to $17.92B while slashing its EPS growth from mid-single-digits to nothing — noting consumers remain “value-conscious … [amid] strained budgets and altered food shopping patterns.”

Shifting consumer priorities: While P&G accuses “a more nervous consumer,” JPMorganJPM

and Bank of AmericaBAC

note a 4% to 7% boost in card spending from last year. CitigroupC

explains the paradox as “a shift towards essentials,” where generic, no-name brands are capturing wallets. Despite the Great American trade-down, UnileverULVR

stands strong, reaffirming its outlook as its turnaround bears fruit. While Trump wages trade wars abroad, Tide, Mountain Dew, and Lays are becoming luxury items on-shore.