A slew of major consumer-facing companies have recently reported their earnings, with tariffs being a dominant theme in their discussions. The impact of tariffs on pricing and supply levels has been a significant concern for these companies.
Newell Brands, the maker of Rubbermaid, Sharpie, and Yankee Candle, has announced a 10% price increase but has not yet factored in the 125% tariff rate on Chinese goods. The company has built up a three- to four-month inventory of goods not subject to the tariff and has paused new orders from China.
The company is not currently paying the tariff, but it will eventually run out of inventory, and retailers will begin to feel the effects. At that point, Newell Brands will likely resume ordering from China.
E-commerce platform eBay has started informing customers about the duties they pay on purchases. The company has introduced messaging on its checkout pages to educate buyers about the additional costs and potential delays associated with international shipments.
eBay’s SpeedPAK shipping program manages much of the complexity of international shipping, including tariff duties, providing greater transparency for buyers. For non-SpeedPAK purchases, the company is managing buyer expectations by providing information on the new costs and potential delays.
Food giant Kraft Heinz is working to minimize price hikes resulting from the tariffs. The company has anticipated some purchases, is exploring alternative sourcing options, and is looking at reformulation and product mix opportunities to mitigate the impact of the tariffs.
Kraft Heinz is taking all possible steps to reduce the need for price increases, but it may still need to consider pricing adjustments in the future. The company is examining various levers to minimize the impact of the tariffs on its business.
