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

NEW YORK — Tariff worries continue hanging over companies as they report their latest financial results and try to provide guidance on their path ahead.

Some tariffs remain in place against key U.S. trading partners, but others have been postponed to give nations time to negotiate. The tariff and trade picture continues shifting and that makes it difficult for companies and investors to make a reliable assessment of any impact to costs and sales.

Seemingly few industries or companies are being spared from the uncertainty. Food and beverage businesses, pharmaceutical companies, and makers of household staples are among the many companies trying to gauge the potential impact to costs and sales.

A new poll by The Associated Press-NORC Center for Public Affairs Research shows that companies are right to be focused on tariffs. About 6 in 10 U.S. adults are ''extremely'' or ''very'' concerned about the cost of groceries in the next few 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 potential impact:

Procter & Gamble

Procter & Gamble, the maker of such products as Crest toothpaste, Tide detergent and Charmin toilet paper, said Thursday said 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 told 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 security and mortgage rates.

''Everything plays into the consumer behavior,'' Schulten said. ''Uncertainty around the stock market and what their 401ks are worth and what the portfolio is worth. Uncertainty around the economic outlook and what it means for their livelihood and the job market.''

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 said it now expects its core earnings per share to be even with last year. Previously it expected mid-single-digit percentage growth.

A 25% 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. market, 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 $200 million.

American Airlines

American Airlines withdrew its earnings forecast for the year amid uncertainty over the economy.

While tariffs might not directly impact airlines and other companies in the travel 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 travel.

Southwest Airlines

Southwest Airlines is trimming its flight schedule for the second half of the year due to lower demand. The company also said it could not reaffirm its 2025 and 2026 outlooks for earnings before interest and taxes, given ''current macroeconomic uncertainty.''

Dow

Chemical company Dow expects to see delays in purchases from businesses and consumers amid tariff-driven economic uncertainty.

''Markets worldwide are awaiting additional clarity into how the tariff and global trade negotiations will land,'' said CEO Jim Fitterling, in a statement.

The company is delaying construction of a facility in Alberta, Canada and expects capital expense savings of about $1 billion from that decision. It is also expanding an ongoing review of its assets in Europe, including facilities in Germany and the U.K.

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Associated Press writers Dee-Ann Durbin, Anne D'Innocenzio, and Michelle Chapman contributed to this report.