Bracing for Tariff Repercussions: A Brand Survival Guide

Campaign US| February 24,2025 | By Kristin Young, Director of Sales, Nativo

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While the consumer response to tariffs has largely been divided along political lines (70 percent of Republicans viewing them favorably compared to 26 percent of Democrats and 29 percent of Independents), the reality of likely price increases in major sectors like gas, automotive, food, alcohol, fashion retail, shoes, and more creates a dangerous situation for brands that fail to respond properly, and a tremendous opportunity for brands that do. 

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At the height of inflation, more than two-thirds of consumers said they couldn’t financially afford further price increases. To a large extent, that sentiment hasn’t disappeared much, if at all. According to recent consumer surveys by Magid, 79 percent of consumers still cite inflation as their primary concern heading into 2025. Combine that with the fact that most Americans (54 percent) don’t understand the potential impacts of tariffs, and brands simply have no choice but to take action. 

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Despite how consumers may view tariffs generally, or whether they (mis)attribute upcoming price hikes to tariffs or inflation, brands are going to be faced with the wrath of pissed-off consumers. In fact, three-fourths of consumers, regardless of political affiliation, say they’re going to pay more attention to prices given the impending tariffs, 64 percent say they’re planning to buy more American-made products, and 57 percent plan to cut back on major purchases this year. 

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Yikes. 

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Making Connections to Head off the Storm

Advertisers, who have hopefully learned a thing or two over the past few years of inflation (and shrinkflation), would do well to take a proactive approach in heading off this storm. For the more economical, budget-friendly brands, that means screaming from the rooftops about low prices and doubling-down on bottom-funnel conversion activities. Brands on the other end of the spectrum should highlight why their products are better and worth the extra cost, whether it's because they last longer, are made with higher-quality materials, or are produced in the U.S.

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For everyone, the likelihood of increased prices presents an opportunity to help your customers adjust to increased prices. For example, brands can bring awareness to their loyalty programs, discounts, or flexible payment plans to make purchases more palatable. Brands can also work on being honest and transparent about price increases, and the impacts of the tariffs on their production processes. 

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The key here is being authentic and transparent in an effort to stay connected with consumers and build trust – to turn a difficult situation into an opportunity to strengthen brands. But again, these efforts must be genuine. Raising prices under the auspices of supply chain pressures while you’re really seeing a 31 percent increase in profits (Starbucks, anyone?) is not a recipe for building long-term trust or success. 

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Simply put: Consumers are loyal to brands they trust and brands they like. Transparency goes a long way, and consumers now go out of their way to find brands that align with their values and lifestyle and to whom they feel connected. In fact, 82 percent of consumers prefer shopping from brands with similar values as their own, and 75 percent have left brands when those values don’t align. By showcasing the unique stories of your brand, consumers can and will find themselves drawn back to it, regardless if they have to pay a few more dollars. 

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Practical Advice for Advertisers 

So how can brands tell that story and create real, valuable connections with consumers? Let’s talk about some of these ideas in more concrete terms. 

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It’s worth it. For brands that are likely going to have to urge consumers to weather higher prices, the key is convincing them it’s worth it. Brands will need to demonstrate that they are better than the lower-cost-but-likely-lower quality alternative. Japanese automakers like Toyota, Honda, or Mazda, for example, can differentiate themselves by highlighting traditional Japanese craftsmanship, known for meticulous attention to detail and long-lasting durability. 

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Brands like Mazda have some amazing narratives that connect the consumer to the brand, like their recent Jinba Ittai messaging, focusing on the human connection to the vehicle. Establishing a product as more than an item – rather, a reflection and extension of oneself – goes a long way to motivate consumers to move beyond initial sticker shock. 

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Cheers. Import beers would do well to emphasize their proud heritage when looking to counter higher prices for the end consumer. For example, with its tagline “Brewed for Those with a Fighting Spirit,” Modelo has built an emotional narrative around hard work, resilience, and cultural pride. In a competitive beer market now affected by pricing increases, Modelo’s differentiation lies in its authenticity, high-quality ingredients, and storytelling that resonates with those who take pride in overcoming challenges. They could further tap into that narrative by establishing themselves as a partner for consumers in overcoming the challenges of higher prices in other areas. This could be achieved with content focused on planning a party on a budget, budget-friendly summer BBQ recipes, or even rewarding oneself by raising a toast with their favorite beer while shedding the day. 

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Slowing down fashion. One piece of the proposed tariffs not getting much attention is the rollback of the de minimis exception, which previously enabled brands like Shein, Temu, and many Amazon sellers to avoid tariffs by shipping their products directly to consumers. With the prices of those goods likely increasing, American-made brands have an opportunity to double down on appealing to consumers’ values and emotions. Domestic brands can highlight how they are supporting local jobs, and ensuring a faster and more simple supply chain. Additionally, these brands can differentiate themselves from the heinous human rights and environmental pitfalls of their fast-fashion competitors by showcasing their own ethical manufacturing practices, sustainable sourcing, and commitment to American heritage and local craftsmanship. This approach not only builds consumer trust but also creates a strong emotional connection with consumers who want to support American-made and domestic businesses, without compromising their morals. 

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At the end of the day, while brands can’t control the tariffs, or the downstream effects, they can control how they respond to them. And the reality is this: They don’t have a choice. Consumers simply won’t sit back and absorb higher prices without putting up a fight or taking their dollars elsewhere. Consumers are already feeling anxiety about rising prices heading into the year, and brands would do well to make sure those consumers feel seen, heard, and valued. Whether through pricing strategies, transparency, or emotional storytelling, the brands that lean into authenticity and connecting with consumers will be the ones that come out ahead.

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Read the full article on Campaign US

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