Free-spending consumers lift company profits, but Trump tariffs now loom

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U.S. President Donald Trump's plan to slap new tariffs on Chinese imports comes on the heels of unexpectedly strong second-quarter results for ...

CHICAGO: U.S. President Donald Trump's plan to slap new tariffs on Chinese imports comes on the heels of unexpectedly strong second-quarter results for automakers, consumer products companies and restaurant chains, boosted by spending on high-end products

Even so, consumers would be unlikely to see higher prices when they start shopping for the holiday season, which begins in November, as a result of the new tariffs. Most retailers have already purchased their holiday-season merchandise, and the inventory for the most part has already arrived at U.S. ports and warehouses.

Similarly, Procter & Gamble's stock touched a record high on Tuesday after the company reported strong demand for skincare and detergent products in the second quarter even though it increased prices to offset surging raw material costs. P&G, whose brands include Olay and Tide, said the price hikes contributed 3 percentage points to a 7per cent jump in organic sales and said North America sales rose by the high-single digits.

 

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