Today: May 04, 2025

Retailers are turning the trade war into a sales event

13 hours ago


The add-to-cart callouts are widespread, and lately they’re coming with a trade war twist: buy now to beat the tariffs.

Retailers and e-commerce brands have been flooding social media in recent weeks with appeals to shoppers’ well-founded fears that President Donald Trump’s import taxes will raise prices, urging them to act now before that happens.

“Tariffs are rising — but our prices aren’t (for now)!” promised DTG Pro, a printing equipment seller, in a recent Instagram post with a 10% discount code.

“Unfortunately, the bridal industry is not excluded from the rising tariffs, so take advantage of our pre-tariff SAMPLE SALE until 4/15, when we will be forced to raise our prices!” New York-based Adrienne’s Bridal posted last month.

The marketing blitz comes amid souring consumer attitudes that have already fueled a buying spree among businesses and ordinary shoppers alike. The U.S. economy shrank in the first quarter as consumers scooped up foreign goods and companies raced to stockpile materials and inventories before steeper levies hit their supply chains.

While Trump’s tariff policies have rolled out erratically for weeks, many foreign goods are already pricier than they were just months ago. Despite a series of partial walk-backs and temporary reprieves on a range of imports, key parts of the president’s trade agenda are just now kicking in.

With the costs of many foreign-made auto parts set to jump by 25% this weekend, automakers have seen vehicle sales spike by double-digits amid tariff fear-buying that they expect to peter out soon. Some dealerships are trying to keep that momentum going as long as they can.

“Get your new vehicle before prices change!” Coastal Hyundai, a Melbourne, Florida-based dealership, told buyers as part of a “Tariff Free Savings Event.”

Keep exploring EU Venture Capital:  No longer 'poor but sexy?' Berlin's economic rise comes at a price

Some promotions have leaned into the uncertainty around which duties might stick.

“The Tariffs Are Coming… Or Are They? We’re as unsure as everyone else,” a custom sticker company posted in March, offering 12% off through the end of March. “If our costs go up, so will our prices. Now’s your chance to lock in savings before that happens.”

There’s an expectation that certain products are going to be expensive, so having a promotion today is certainly very valuable.

Duleep Rodrigo, U.S. consumer and retail Lead, KPMG

Half of U.S. consumers are actively seeking out discounts and promotions in their summer purchases, according to a recent survey by the accounting firm KPMG. More than 70% expect a recession within the next year.

“In some cases, it’s certainly working,” Duleep Rodrigo, who leads U.S. consumer and retail consulting at KPMG, said of tariff-based marketing campaigns. “We’ve seen auto sales up. We’ve seen appliances pick up. There’s an expectation that certain products are going to be expensive, so having a promotion today is very valuable.”

Some companies are taking a more somber tone, warning that tariffs could kill their business and appealing to customers to help keep them afloat without having to hike prices.

“These may be uncertain times, but the kitchen is a refuge,” wrote Burlap & Barrel, a seller of single-origin spices, in an April Instagram post. Pledging to keep its $10 price cap and free shipping minimum — and to continue its revenue-sharing program with smallholder farmers — the company added that it was “extending our biggest sale ever, up to 20% off sitewide.”

Keep exploring EU Venture Capital:  US tariff war hurting trade with China; Beijing ‘confident’ of hitting growth targets – business live | Business

Many of the brands trying to drum up shoppers’ support appeared to be smaller retailers and startups that sell and market heavily online. Small businesses have warned in recent weeks that tariffs pose an existential threat, saying they have less leeway than big corporate rivals to shake up their suppliers or absorb higher costs.

The U.S. Chamber of Commerce, which represents some 3 million companies ranging from corporate juggernauts to Main Street operators, appealed to the White House on Wednesday for exclusions from the import taxes to spare small businesses from “irreparable harm.” Some e-commerce companies have already taken to social media to announce tariff-driven changes, like a shutdown in shipments to U.S. customers.

A White House spokesperson didn’t immediately respond to a request for comment.

Retail analysts said even the more opportunistic-sounding marketing reflects businesses’ efforts to adapt to the evolving trade landscape.

“There are all these legitimate financial reasons why you might need to have a sale now, or need to lower your pricing now, or need to change your marketing message to try to drive more sales now,” said Jason Goldberg, chief commerce strategy officer at Publicis Groupe and founder of the retail media company Retailgeek.

Many entrepreneurs could be thinking: “I can lean into it and drive some additional sales — and if I don’t, one of my competitors might,” Goldberg said. “We’re seeing real moves that are economically necessitated, and we’re seeing opportunistic marketing, very often from the same people.”

Other companies are taking a more openly political stance with “anti tariff” sales, and recasting online shopping as a form of resistance.

“Donald Trump’s tariffs are a terrible deal for, well, everyone,” Charles Ryan, partner and chief operating officer at Monte Cook Games, wrote in a February blog post. Noting that virtually all of its books, games and card decks were manufactured in Canada or China, both of which Trump has targeted with tariffs, Ryan promised a 25% discount on all existing physical products.

The company, which has decades-old ties to the role-playing game Dungeons & Dragons, produces two to four years of supply at a time, Ryan said in emailed comments. That means most of its inventory is now sitting on warehouse shelves, while the 15-20 new products Monte Cook makes each year are a “different story,” he said.

For its next big tabletop game, the brand is already working to keep costs down by producing many of its components in “no- or low-tariff territories” and assembling the project in its home state of Kansas — approximating the type of outcome the Trump administration has repeatedly said its levies are meant to spur.

“The coming impact of these tariffs is going to be terrible for business and consumers of all stripes. If we can offset some of that through a period of higher sales now, that’s good for us,” Ryan said. “If it reassures our fans that their hobby isn’t going to be destroyed right away, and lets them save a few bucks, it’s hard to see a downside to that.”





Source link

EU Venture Capital

EU Venture Capital is a premier platform providing in-depth insights, funding opportunities, and market analysis for the European startup ecosystem. Wholly owned by EU Startup News, it connects entrepreneurs, investors, and industry professionals with the latest trends, expert resources, and exclusive reports in venture capital.

Leave a Reply

Your email address will not be published.