Liberation Day for America but Not for Some U.S. Consumer Staple Product Companies and Grocers

Declaring April 2, 2025, "Liberation Day," President Donald Trump announced global tariffs on all products imported to the U.S. We expect the impact of these tariffs will be varied and felt throughout the U.S. market, affecting consumer staple products (CSP) companies and grocers, as well as consumers.

-- On top of the 10% baseline tariff, many other U.S. trading partners will be subjected to wide range of additional tariffs.

-- Tariffs will affect market dynamics, pressuring companies and consumers alike, and could disrupt the entire CSP supply chain.

-- Larger U.S. companies, especially those with a global presence, will be somewhat insulated from the immediate effects while smaller, specialist, and regional companies will be more rapidly and meaningfully affected.

"As U.S. CSP companies and grocers react to these tariffs--and consumer behavior changes in response--we expect such market dynamics to have a varied effect on their volumes, EBITDA, and operating cash flows," said Aarti Magan, Vice President, Corporate Ratings.