KHC · 10-Q · 2026Q2 · Full report

Inflation and Tariff Impacts

Kraft Heinz Co · 2026-08-05 · Importance 43 · Surprise 32 · In source text

Kraft Heinz experienced lower supply-chain inflation in the six months ended June 27, 2026, but expects inflationary pressures to increase throughout 2026 partly because of the Iran Conflict. The company is using efficiency initiatives, pricing, alternative sourcing, and hedging to mitigate inflation, although timing gaps may persist and pricing actions have negatively affected or could continue to affect market share. U.S. tariffs imposed under the International Emergency Economic Power Act were invalidated by the U.S. Supreme Court on February 20, 2026, after which the Trump Administration announced a new 10% global tariff whose duration, scope, and legal status remain uncertain. The Court of International Trade ordered tariff refunds on March 4, 2026, but Kraft Heinz is generally not the Importer of Record for its non-U.S. raw materials, making recovery dependent on suppliers and contractual outcomes.

Key facts

• In response to the Supreme Court decision, the Trump Administration announced a new 10% global tariff under a different statutory authority. source
• The U.S. Supreme Court invalidated the tariffs imposed under IEEPA on February 20, 2026. source
• On March 4, 2026 the Court of International Trade ordered the Trump Administration to begin refunding all tariffs imposed under IEEPA. source
• During the six months ended June 27, 2026 the company experienced inflationary pressures in supply chain costs at rates lower than the prior year but expects inflationary pressures to increase throughout 2026 due, in part, to the Iran Conflict. source

Impact estimates