The branded spice and seasoning maker expects to offset nearly all of the tariff impact in 2026 using the same strategy it employed in 2025, EVP and CFO Marcos Gabriel told investors. In 2025, McCormick reduced the impact of tariffs from $70 million to $20 million by cutting expenses, sourcing alternatives and raising prices, Gabriel said. Tariffs, combined with commodity costs, drove mid-single-digit inflation for the company, which expects a similar rate this year. He added that tariff rates lowered in 2025 are not expected to benefit McCormick's bottom line this year because the company has already adjusted some supply chain mitigation efforts to the new rates. "Lastly, as you know, this is an evolving situation, and we'll continue to monitor how policies impact tariff rates and, therefore, our costs," Gabriel told investors.