PG · 10-K · 2026A · Full report

Supply Chain Tariff Impact

PROCTER & GAMBLE Co · 2026-08-04 · Importance 47 · Surprise 60

On February 20, 2026, the U.S. Supreme Court ruled that tariffs imposed under the International Emergency Economic Powers Act were invalid. P&G had previously paid approximately $200 million in IEEPA tariffs that may be recoverable, and recognized recovery of half of that amount during the quarter ended June 30, 2026. Net tariff effects reduced fiscal 2026 gross margin by 30 basis points, including higher costs and recognized recoveries.

Key facts

• P&G previously paid approximately $200 million in IEEPA tariffs that may be recoverable. source
• During the three-month period ended June 30, 2026, P&G recognized recovery of half of the approximately $200 million in IEEPA tariffs in its Consolidated Financial Statements. source
• Total inventories increased, consuming $641 million of cash and days inventory on hand increased by two days. source
• During the fiscal years ended June 30, 2026 and 2025, P&G did not have any financial commodity hedging activity. source