In a call with Wall Street analysts on Friday, Colgate Palmolive's Chief Financial Officer Stan Sutula addressed strategies to mitigate potential tariffs' effects on its toothpaste production in Mexico for the U.S. market amid looming tariffs on imports from Mexico and Canada. Sutula mentioned, We do produce some of our products for the U.S. in Mexico, primarily toothpaste, and we're working on potential mitigation plans. Colgate, known for brands like Colgate Total and Colgate Optic White, commands about a third of the U.S. toothpaste market.
Sutula also highlighted that the company's efforts to offset tariff impacts might affect both imported raw materials and finished products, including preparations for potential retaliatory tariffs. Notably, Colgate's financial projections for the 2025 fiscal year do not currently factor in tariff costs.
Furthermore, Sutula emphasized that Colgate has bolstered its U.S. production capacities in recent years and can leverage co-manufacturers as part of its supply chain strategy. The CFO noted how some companies have adjusted their import strategies to mitigate tariff effects, while others have delayed actions due to cost considerations.