Procter & Gamble has been granted an exemption from the 25 percent US tariff levied on imported Japanese and Swedish steel by the Trump administration, according to a report by Reuters.
The steel is used for the company’s Gillette and Venus razor blades with P&G being the second big company to be exempt from the tariffs following Edgewell’s exception earlier in the year.
Speaking of the tariff, P&G spokesperson Damon Jones told Reuters, “There was definitely a financial impact to the company, but we haven’t disclosed any numbers.
“It wasn’t materially market-moving, but given the competitiveness of this industry we think it is important and significant.”
P&G decided not to pass on the tax increase to consumers, with the company stating that US steel makers could not make the precision razor blades needed for the products, therefore the company had to either pay the higher prices or look for an exemption.