Description
Tariffs have stolen the show when it comes to anything politics and economy, but you've probably also seen it in advertising.
More brands are turning the tariff headlines into a marketing opportunity.
"I think companies are realizing they have to address the elephant in the room one way or the other. They have to talk about tariffs," said Deidre Popovich, an associate professor of marketing at Texas Tech University.
Popovich said not only is urgency a tried-and-true marketing tactic, but economic uncertainty is driving brands to connect with consumers in new ways.
RELATED STORY | Trump criticizes Walmart for blaming tariffs as prices set to rise
"I can't think of anything that's been so politically motivated that's driving marketing messages like we're seeing now with tariffs," said Popovich.
Companies from automakers to underwear brands are making the import tax a part of their sales pitch.
A sense of urgency isn't the only way companies are framing the price hikes. Depending on how companies want to connect with customers, they're also leaning into price transparency and patriotic messaging.
Bare Necessities, a lingerie and swimsuit brand, pushed a pre-tariff sale via text message to its shoppers, while clothing brand Universal Standard offered sales on items already in its warehouse through "mystery box" deals.
Spice company Burlap and Barrel turned their annual spring sale into a tariff sale. It was so successful, the company thanked its customers in an email for helping keep them afloat in trying times.
"I think companies are trying to connect with consumers on that emotional level. Sending that message, we're all in this together," said Popovich.
Shoemaker DSW also sent emails to its customers with similar messaging.
But are they all actually sales? It depends.
RELATED STORY | Walmart to adjust prices due to tariff-related costs, CEO says
"The sales may just be the normal price of the product, but in anticipation of costs going up in the future, it feels like it can be positioned as a sale," said Popovich.
Companies that already leaned into "made in the USA" marketing are finding new enthusiasm for the message.
Companies like Ford and Metro Mattress are highlighting their domestic workers and manufacturing. Popovich said it's about staying true to the brand and relaying authentic messaging to customers.
Not every company is using tariffs to offer discounts. Some are just explaining price hikes, most notably Walmart, Adidas and Mattel.
The U.S. has imposed a 10% tariff on most imported goods and a 25% duty on aluminum and steel products, in addition to the 30% tax on Chinese goods. These tariffs are charged to companies importing the items.
President Donald Trump implemented tariffs on goods from dozens of nations in April, but later opted to pause them for 90 days to facilitate negotiations. When the 90-day pause ends in July, it remains unclear how much importers will have to pay.
President Trump has insisted that tariffs would help facilitate the return of manufacturing jobs to the U.S. Walmart has said that in recent years it has been purchasing more from U.S. suppliers, but many items must still be imported.
News Source : https://www.kbzk.com/politics/economy/tariffs-as-a-marketing-strategy-heres-how-companies-are-framing-the-import-tax
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