Procter & Gamble is to raise prices on some products after predicting it will take a £1.5bn hit from tariff turmoil.

The household goods giant said US President Donald Trump’s tariff war had created consumer uncertainty and a difficult global trading environment.

The company, which owns popular brands such as Always, Ariel, Duracell, Head and Shoulders, Olay and Oral-B, said it would be forced to implement price rises and cost cuts to “mitigate” the impact of tariffs in the short term.

In a post-trading call with journalists, chief financial officer Andre Schulten said: “We will have to pull every lever we have in our arsenal to mitigate the impact of tariffs within our cost structure and Procter & Gamble.”

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Long-term suggested changes also included not sourcing raw materials from China. However, the CFO pointed out this would be complicated to implement due to a lack of alternative options.

The business said China represented just 10% of its imports, but that current US import tariffs of 145% made this more significant, with Schulten adding that it predicted the total loss would be £1.5bn.

The revelation came as Procter & Gamble posted a dip in its third quarter, as it downgraded its sales forecast to be “approximately” in line with last year, compared to its previous goal of 2% to 4% growth.

In the three months ending 31 March 2025, P&G’s year-on-year sales fell to $19.8bn, down $300m from its predicted Q3 results.