Tariff turmoil: What P&G, Pepsi and other companies are saying about tariffs

By DAMIAN J TROISE Associated Press Business Writer NEW YORK AP Tariff worries continue hanging over companies as they document their latest financial results and try to provide guidance on their path ahead A few tariffs remain in place against key U S trading partners but others have been postponed to give nations time to negotiate The tariff and commerce picture continues shifting and that makes it demanding for companies and investors to make a reliable assessment of any impact to costs and sales Seemingly insufficient industries or companies are being spared from the uncertainty Food and beverage businesses pharmaceutical companies and makers of household staples are among the multiple companies trying to gauge the prospective impact to costs and sales A new poll by The Associated Press-NORC Center for Inhabitants Affairs Research shows that companies are right to be focused on tariffs About in U S adults are extremely or very concerned about the cost of groceries in the next insufficient months while about half are highly concerned about the cost of big purchases such as a car cellphone or appliance Here s what companies are saying about tariffs and their prospective impact Procter Gamble Procter Gamble the maker of such products as Crest toothpaste Tide detergent and Charmin toilet paper revealed Thursday declared it s doing whatever it can to reduce higher costs from President Donald Trump s expansive tariffs from shifting sourcing to changing formulation to avoid duties But P G s Chief Financial Officer Andre Schulten described reporters on a call that the consumer products giant still will likely have to pass on higher prices to shoppers as early as July The consumer product giant reduced its annual financial outlook after reporting lower sales particularly in the U S and Western Europe during the latest quarter due to a pullback in consumer spending over worries about tariffs as well as overall financial worries about job measure and mortgage rates Everything plays into the consumer behavior Schulten noted Uncertainty around the stock sphere and what their ks are worth and what the portfolio is worth Uncertainty around the economic outlook and what it means for their livelihood and the job arena Pepsi PepsiCo lowered its full-year earnings expectations citing increased costs from tariffs and a pullback in consumer spending The maker of Pepsi beverages and Frito-Lay snacks revealed it now expects its core earnings per share to be even with last year Previously it expected mid-single-digit percentage progress A tariff on imported aluminum is among those hitting PepsiCo and other beverage makers The company expects elevated levels of volatility and uncertainty for the rest of this year Merck Merck trimmed its earnings forecast for the year though it maintained its guidance for revenue The pharmaceutical giant has a global reach Half of its revenue comes from the U S sphere with the rest of the world making up the other half according to FactSet The company expects tariffs already implemented to cost the company about million American Airlines American Airlines withdrew its earnings forecast for the year amid uncertainty over the financial market While tariffs might not directly impact airlines and other companies in the voyage sector they could prompt a shift in consumer spending Tariffs typically make goods more expensive and that might force consumers to tighten their budgets and focus more on necessities while cutting back on discretionary items and services such as tour Associated Press writers Dee-Ann Durbin and Anne D Innocenzio contributed to this summary