Retailers big and small across the United States are already leveraging the cloud of uncertainty hanging over President Donald Trump’s trade playbook. They are incentivizing customers to buy today, ahead of price increases that might come later. Businesses are understandably anxious about the impact that anticipated tariffs will create. They’re developing these marketing strategies to play on consumer fears of higher prices and scarcity. And with most retailers jittery over a potential consumer spending slowdown, the clock is ticking.
In recent weeks, Bare Necessities has heroically stepped out and promised a “pre-tariff sale.” Shoppers can score up to 30% off! The company has communicated a clear message to customers: “Save up to 30% before prices shift.” This approach is designed to get Americans to buy up goods while they are still available at stable prices.
“…what we are witnessing is the death of the once mighty retail chain.” — Sonia Lapinsky, retail analyst She mentioned that retailers are preparing for a future slowdown in consumer spending due to tariff fears. She made a note that manufacturers are now trying to use the existing tariff discussion as a boogieman. They’re using it in combination as a marketing effort. “People who have the means are hearing all this talk…and they’re actually getting out there shopping so that they can get their purchases in before the prices go up,” she explained.
The continuing tariff saga has created a sense of uncertainty for many retailers. For businesses, it’s a maddening juggling act to plan under a chaotic and unpredictable landscape created by the flip-flopping on trade policies. Since enactment of the TRQ, the Trump administration temporarily reduced tariff rates for almost every country. This decision did not provide long-term relief from the unpredictability that firms face.
Beis, an up-and-coming luggage and travel accessory brand, expressed this fear in an email to customers last week. In a candid message, they stated, “Let’s skip the corporate-speak: This tariff situation is a complete dumpster fire, and we’re all getting burned.” With costs increasing, Beis said she was most frightened about the financial burden that’s coming, noting prices will start to skyrocket.
Some retailers importing goods from China now face crippling duties, with tariffs jumping as high as 145%. In turn, many of these same companies have suspended or canceled thousands of supply chain orders to adapt to the unpredictable economic environment. Businesses are already scrambling to ramp up production and stockpile inventory in other countries such as Vietnam and Cambodia. They expect to see even higher tariff increases soon.
Apparel retailers such as Fashion Nova and Knix have quickly and seamlessly adapted to this trend. Since Trump’s announcement of new high reciprocal tariffs, they’ve laced tariff-friendly rhetoric into their ad buy campaigns. They know that consumers are sympathetic to the plight of their trade dispute. Their chief concern is making it through the stormy weather with their customers coming along for the ride.
Barbara Kahn, a marketing professor at The Wharton School, noted that using humor in advertisements about tariffs can be a strategic way for brands to connect with customers. This strategy allows you to address the topic of concern without offending your valuable shoppers for their personal political beliefs.
In fact, many retailers are considering cashing in on the current tariff confusion. So they hope they can use a period of artificially lowered prices to solidify their financial future even as their own costs go up. Lapinsky suggested that this tactic might feel counterintuitive but can be crucial for companies looking to maintain demand amid uncertainty.
Retailers are increasingly challenged to forecast their performance for the remainder of the year due to the unpredictable nature of tariffs. Dampening the mood is the anxiety around these economic changes, which has piled on to make consumer spending more jittery than since February and March.