Tariff: While Trump gets tariffs, Americans receive prices increase

How to block tariff? Lula is willing to call Trump US President Donald Trump, is applying his fares to a portion of countries, and US companies already indicate how they intend to react: passing on costs to consumers. In recent months, major retailers and consumer goods manufacturers have warned that imported products would be overwhelmed, forcing them to choose to reduce profits or pass costs to customers. 📱 Bake the G1 app to see real -time and free news in the case of Procter & Gamble and other companies, both measures are being adopted. On Tuesday, the consumer goods giant, which manufactures domestic items such as paper towels and detergent, released a negative projection for 2025 and reported to large retailers such as Walmart, which will increase the prices of some products in the US from next week. This challenge faced by companies in the next quarters must be passed on to consumers. P&G has said it will increase prices of about 25% of its products in the US to offset the costs of new tariffs. According to a company spokesman, the readjustments will be in the average digit range in all categories. Although stock rates have reached records this year, driven by strong investments in technology actions, many consumer companies have faced difficulties. Since the announcement of tariffs in the so -called “Liberation Day”, on April 2: P&G actions fell 19%. Nestlé’s, 20%. Kimberly-Clark lost 11%; And Pepsico retreated almost 7%. In the same period, the S&P 500 index rose more than 13%. Companies in the consumer, food and beverage sectors have been facing weak sales since pandemic, as consumers resist high prices from traditional brands. Last week, Nestlé said North America consumers remain cautious about paying more in the cashier. New price increases should intensify investor’s concerns about the ability of major brands to deal with the double challenge: more cautious consumers and high costs resulting from Trump’s commercial war. “You will see companies like Walmart, Amazon and Best Buy being required to pass on consumer price increases,” said Bill George, former President and CEO of Medtronic and a researcher in Executive Education at Harvard Business School. “Main Street hasn’t seen the consequences of increasing tariffs yet – and they will increase.” Between July 16 and 25, companies monitored by Reuters’s global tariff tracker estimated losses between $ 7.1 billion and $ 8.3 billion throughout the year. GM, Ford and other automakers have been absorbing tariff costs so far – adding billions of dollars. Other companies, such as ESSILORLUXOTTICA, manufacturer of Ray-Ban glasses, have already readjusted their prices. Swatch, a Swiss watch and jewelry manufacturer, raised its prices by about 5% after Trump’s announcement in April, with no impact on sales, according to CEO Nick Hayek, in a recent interview with Reuters. Premium brands, such as tissot clocks, are less affected by price increases. According to Hayek, customers who want to purchase more expensive models often buy abroad, where taxes are smaller. “You can’t do this with cars. You can’t do this with machines. But you can do it with watches. So it’s not so problematic for us,” he said. Many companies anticipated the sending of goods and raw materials to the US before the tariffs are entry into force. Economists and analysts believe this stock has helped postpone price increases and explains why the effects of tariffs are not yet reflected in the country’s inflation data. Andrew Wilson, Deputy Secretary-General of the International Chamber of Commerce, estimates that inflationary effects will be perceived when inventory are sold out-which can occur only in the fourth quarter of this year or the first of the next. Infographic – Understand 50% rate announced by Trump to Brazil and the economic relationship with the US. Art/G1

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