On April 2, 2025, President Donald Trump unleashed a barrage of tariffs that have sent shock waves through the global economy. These measures imposed a universal 10% tariff on all imports, with punitive rates targeting specific nations: a staggering 34% on Chinese goods and 20% on European Union imports, for example. Additionally, the administration has slammed shut the “de minimis” loophole, subjecting low-value shipments from China to these crushing duties.
Then, about a week later, the administration paused most of the tariffs but increased the tariffs on China. Full disclosure: With the frequency of back-and-forth on policy (and politics), it is difficult to publish a blog post about this topic—things change nearly every day. The status may be different already (!), but suffice to say, businesses and consumers are going to be challenged by tariffs and the uncertainty of tariff policy for the foreseeable future.
The (impending) economic storm
Economists are sounding the alarm: These tariffs are poised to ignite inflation, jack up consumer prices, and potentially hurl the US into a recession. Households could see an average annual hit of US$3,800 as costs for essentials like clothing and electronics skyrocket. The stock market has already felt tremors, with the Dow plummeting nearly 1,700 points in a single day, erasing a staggering US$3.1 trillion in market value.
Price increases influence buyer intent
Tariffs lead to higher costs for imported goods, which often results in increased retail prices. This price elevation can cause consumers to reassess their purchasing decisions, especially for nonessential or luxury items. For example, the consumer packaged goods sector is experiencing intensified market competition as brands grapple with higher costs. Many are considering absorbing some of these additional expenses or seeking alternative suppliers to keep prices competitive. This scenario underscores the importance of marketers to understand and adapt to changing consumer behaviors in response to price fluctuations, whether B2B or B2C, because everyone is going to feel this.
Acceleration of deals amid anticipated price hikes
Tariff policy and implementation can create a sense of urgency among consumers, prompting them to expedite purchases before prices increase. Indeed, this behavior has already been observed in various sectors; for instance, New York City stores have reported a surge in shoppers rushing to buy electronics, appliances, and cars ahead of tariff-induced price hikes. And sales representatives are encouraging early purchases to avoid the anticipated cost increases.
Tariffs can lead to both a reassessment of buyer intent due to higher prices and an acceleration of deals as consumers seek to avoid anticipated cost increases. Marketers must remain agile, adapting strategies to navigate these shifts effectively. For example, we can leverage consumer urgency by crafting timely promotions and communicating the benefits of immediate purchases to buyers if we are able to deliver a well-crafted offer.
Delay is not a winning strategy for marketers
In this volatile landscape, complacency is a death sentence. Marketers must act decisively to shield their brands and maintain consumer trust. Here’s your battle plan, with insights on how CMD can be your strategic ally:
- Radical transparency: Concealing price hikes is not an option. Be up-front with your customers about the reasons behind increased costs. Honesty will be your lifeline in preserving brand loyalty.
CMD insight: Our team excels in crafting transparent communication strategies that effectively convey complex information, ensuring your customers remain informed and trust in your brand’s integrity. - Uncompromising value proposition: With wallets under siege, consumers will scrutinize every purchase. Amplify the quality and durability of your products to justify the steeper prices. If you excel at customer support and user experience, emphasize that value that makes it easier for people to do business with you.
CMD insight: We specialize in refining brand narratives to highlight unique selling points, reinforcing the value and quality of your offerings in the minds of consumers. We specialize in messages that move people and change minds and change behaviors. - Supply chain revolution: Relying on traditional suppliers could be your downfall. Collaborate with your logistics team to unearth alternative sourcing options in tariff-friendly regions.
CMD insight: While we focus on strategic communication, we can assist in developing messaging around supply chain adjustments, helping you maintain transparency with stakeholders during transitions. We can do fast message testing to ensure you go to market with the right ones. - Sacrificial margin analysis: Determine if your company can absorb a portion of the tariff costs to keep prices competitive. This strategic sacrifice could mean the difference between survival and extinction.
CMD insight: We provide data-driven insights to help you make informed decisions about pricing strategies, balancing competitiveness with profitability. - Consumer pulse monitoring: Conduct relentless market research to gauge how your audience is reacting to price changes. Adapt your strategies with agility to stay ahead of shifting sentiments.
CMD insight: CMD’s market research capabilities delve deep into consumer behavior, providing you with the intelligence needed to pivot strategies effectively in response to market dynamics. We have methodologies to get insights quickly so you can pivot. - Strategic promotions: Craft targeted deals or bundle offerings to provide perceived value without eroding your bottom line. Clever promotions can be a powerful antidote to consumer hesitation. Organic and owned media vs. paid might make for a better investment.
CMD insight: We deliver promotional campaigns that resonate with your target audience, enhancing perceived value and encouraging purchases despite price increases. - Industry solidarity: Engage with trade associations to collectively lobby against detrimental policies and share survival tactics. There’s strength in numbers.
CMD insight: CMD can facilitate connections and communications within industry networks, analysts, and trade media and influencers, fostering collaborations that amplify your voice in policy discussions across your industry.
Contact us today to set up a meeting and discuss what’s keeping you up at night about tariffs—and how they impact your potential customers.
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