Procter & Gamble (PG) says the Trump administration's tariff policy is causing it to push through price hikes on shoppers to protect its profit margins.
"It [tariffs] is inherently inflationary — it increases the cost of importation and that's part of the policy design," P&G chairman and CEO Jon Moeller told me on Yahoo Finance. "In some places, that makes a lot of sense. But it inherently increases costs. Then manufacturers need to work through how much of that they can absorb and deal with and how much they need to pass on."
The company said Tuesday it will see a $1 billion hit to profits in its new fiscal year as a result of tariffs.