Merck warns of tariff consequences
Merck & Company $MRK (+4 %) recently informed its investors that it expects a loss of around 200 million euros due to new tariffs. This news was not exactly unexpected, but it is causing concern among investors. The potential impact on the company's future returns could be significant. In particular, the impact of the tariffs could severely impact profitability in certain areas of Merck's business. Investors should follow developments closely and keep a close eye on possible adjustments to the company's strategy. In these turbulent times, it is crucial to stay informed and make the right decisions to protect the portfolio.
Procter & Gamble focuses on expensive products
In the USA, Procter & Gamble $PG (+0,53 %) has developed an exciting new strategy to meet the challenges posed by rising tariffs. The company plans to launch a product line that includes high-priced items such as €380 electric toothbrushes and improved razors. CFO Andre Schulten explained that price increases are a key strategy for the company to offset the financial burden of the government's volatile tariff policies. This approach has already proven successful during the COVID-19 pandemic, when Procter & Gamble was able to maintain its market position despite the economic uncertainties. However, the risks should not be underestimated, as consumer spending in the US is already showing a decline, which could potentially jeopardize sales figures. Nevertheless, Schulten sees a growth opportunity of EUR 5 billion in the USA, provided that more consumers can be won over to the new products. This will show how well the company can overcome the challenges.
Sources:
https://finance.yahoo.com/video/merck-warns-big-tariff-hit-172053404.html
https://finance.yahoo.com/news/p-g-leans-380-electric-163000777.html