BAKERSFIELD, Calif. (KERO) — As tariffs are starting to impact the economy, it can feel like your money is going down the drain.
Aaron Hegde, an economics professor at CSUB and the executive director of the Grimm Family Center for Agricultural Business, says tariffs are starting to bleed into all aspects of the economy.
“As the tariffs and things become more certain, then a lot of these costs are being passed down to the consumers,” said Hegde.
Now, we’re seeing this with the cost of toilet paper and laundry detergent.
“Toilet paper, one of the key ingredients in there is lumber, right? So you take wood, turn it into paper,” said Hegde. “A lot of the lumber comes from Canada. And there’s been tariffs on lumber and Canada along with other goods and things that are being imported.”
Proctor and Gamble, or P&G, is a multinational consumer goods corporation, well known for brands including Tide, Charmin, and Downy.
On Tuesday, they released their fourth quarter and fiscal year 2025 results that share how the company estimated a one billion dollar increase in production costs due to tariffs.
Hegde says this could mean a 3% to 5% increase in costs.
“This is what Proctor and Gamble is increasing their price to when they sell to their wholesalers,” said Hegde. “By the time it comes on to the retailers, it may be a little more.”
So what can you do to help save?
Hegde says to buy in bulk. He expects a behavior shift, with customers shopping in warehouse clubs such as Costco or Sam's Club.
He adds that others may opt for a different brand or quality.
“Some people make some choices in that and just get a different brand that’s cheaper or store brands might be cheaper,” said Hegde. “And maybe instead of getting like the 2-ply luxury Charmin, you might get the 1-ply store brand.”
And others may decide to make lifestyle changes.
“People might also make changes somewhere else… they might say, okay, I will pay the extra here, but maybe I’ll have one less coffee per week or something like that,” said Hegde.
While P&G hasn’t announced an exact price change, consumers can expect to pay more at the register.
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