McCormick Increases Tariff Impact Estimate
McCormick, the spice giant, has updated its estimated tariff impact to $140M despite efforts to mitigate costs.
The company is trying to offset tariff costs through various strategies, including:
- Productivity savings
- Alternative sourcing
- HHigher prices
McCormick has been grappling with tariffs since April, when President Donald Trump announced levies on nearly every country.
Reducing levies was difficult because some raw materials were not commercially available in the U.S.
The company has a diverse portfolio of 17,000 ingredients across 90 markets and plans to continue mitigating tariffs by raising prices, shifting procurement to lower-tariff countries, and finding productivity savings.
Author's summary: McCormick updates tariff impact estimate to $140M.