Published by Global Banking & Finance Review®
Posted on April 24, 2025
2 min readLast updated: January 24, 2026
Add as preferred source on GoogleP&G is using premium products to counteract tariffs, despite slowing US consumer spending. The company aims for $5 billion growth with new product launches.
By Jessica DiNapoli, Juveria Tabassum
NEW YORK (Reuters) -Procter & Gamble is betting consumers will shell out for $380 electric toothbrushes, spruced-up Pampers diapers and pocket-sized Always pads, which command higher prices, to offset new costs from the Trump administration's erratic tariff policy.
Without the ability to easily move sourcing out of China, P&G is leaning on price hikes, particularly on new and improved products, to counter the tariffs, Chief Financial Officer Andre Schulten said Thursday.
Venus razors that come with handles to hang in the shower, a $12 whitening toothpaste and deeper-cleaning Tide pods are among the company's new and improved offerings.
This was P&G's playbook during the COVID-19 pandemic and when inflation skyrocketed after. The strategy ultimately helped the Cincinnati-based maker of Tide detergent weather those bumpy economic times.
The products P&G is rolling out shed light on its vision for U.S. consumers facing higher tariffs and during a possible recession: cutting back on discretionary purchases like video games and clothing, but continuing to spend on products that better clean their dishes, homes and teeth.
The gambit this time is risky because Schulten said P&G is seeing consumers in the United States, its biggest market, reel in their spending. He cited volatility of retirement plans, mortgage rates, the job market, and "all the divisiveness and nationalistic rhetoric" as reasons why consumers are pausing their spending.
"I don't know if it will work well enough," said Michael Ashley Schulman, chief investment officer of P&G investor Running Point Capital. "They need enough of the high-end consumers to buy the higher-end prices."
Consumption in the United States fell to 1% in February and March from 3% in the past 12 months, Schulten said.
But Schulten said the company sees the opportunity for $5 billion of growth in the United States by getting more consumers to buy its goods.
P&G's top-of-the-line Oral-B iO series 10 electric toothbrush, and its entry-level iO series 2 version, which sells for $60, have helped the company gain share, Schulten said.
He added that the company would be unveiling new products across its Febreze, Dawn dish soap, Mr. Clean, Swifer and Cascade brands.
(Reporting by Juveria Tabassum in Bangalore and Jessica DiNapoli in New York; editing by Nick Zieminski)
The article discusses P&G's strategy to use premium products to offset tariffs and economic challenges.
P&G is introducing high-priced products like electric toothbrushes and upgraded razors to offset tariff costs.
The risk is slowing US consumer spending, which could impact the success of P&G's strategy.
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