Reckitt's Tariff Troubles: Navigating the U.S. Trade Storm

Reckitt faces potential tariff issues in the U.S. due to its manufacturing reliance on imports from Mexico and Southeast Asia. CEO Kris Licht is evaluating strategies to address cost implications, including price adjustments. As global trade dynamics shift, Reckitt aims to increase local production to mitigate risks.

Reckitt, known for brands like Lysol and Durex, may confront elevated costs or the necessity to increase prices in the U.S. This situation arises as the company contends with new tariffs imposed by President Trump's administration, primarily affecting its imports from Mexico and Southeast Asia.

Reckitt manufactures 57% of its U.S. sales locally across five factories, with the remainder imported. CEO Kris Licht noted that Reckitt is monitoring tariff developments closely, a sentiment echoed across corporate America where companies struggle to balance cost pressures and consumer price sensitivity.

With plans to boost domestic production, including a new pharmaceutical site in North Carolina, Reckitt is preparing for future challenges. However, the unpredictability of tariff changes leaves the company in a precarious position as it negotiates between maintaining profit margins and appeasing American consumers.

(With inputs from agencies.)