As tariffs loom, Gillette razor maker sourcing more steel from India

Procter & Gamble has overhauled its supply chain for the tiny, extra-thin strips of stainless steel in its Gillette razors to source from India, a move expected to help protect its margins from any tariffs US President-Elect Donald Trump may impose.

The stainless steel the Gillette brand razor maker uses is highly specialised to prevent nicks and cuts and is only produced in large quantities by a handful of companies, none of which are located in the US, P&G has told the US Commerce Department in public filings.

A Reuters analysis of import records over the past four years shows that P&G has shifted where it buys the stainless steel for its top grooming brands in the United States, its biggest market, to a cheaper Indian manufacturer, a move that may help it offset higher costs in Trump’s second term.

The Cincinnati-based company now primarily obtains the steel for Gillette from New Delhi-based Jindal Stainless, according to the US import records for P&G subsidiaries, including Gillette.

Investors view P&G as a top operator in the competitive consumer products industry, with its margins exceeding those of rivals like Kimberly-Clark.

It’s a pattern P&G hopes to keep after Trump takes office in early 2025. During his first term, P&G faced $1.4 billion in external costs including tariffs that ate into profi t s .

A P&G spokesperson confirmed that the company has worked with Jindal, adding that details of its relationships with business partners are competitively sensitive. A spokesperson added that “it would not be accurate to point to cost as the sole driver of any sourcing decision.”