Under President Donald J. Trump, new tariffs have been imposed on US imports, affecting businesses of all sizes. These companies counted on more affordable goods from other countries as part of their business model and marketing strategy.
Many goods incur a reciprocal tariff; a standard 10% tax with higher rates imposed on goods from countries that trade surpluses with the United States. Country-specific tariffs range from 20% to more than 50%. China, a large supplier of US goods, is now subject to a 34% import tax. Imports from Canada and Mexico now also face tariffs, except certain products that fall under the USMCA or United States-Mexico-Canada Agreement.
While some tariffs have an expiration date and others have been paused, many are still in place, leaving businesses scrambling to come up with a plan B to not only sell their goods but market them.
The promotional products and print marketing industry has taken a significant hit with a large taxation on materials like branded pens, apparel, signage, and imported inks and paper products. Even digital marketing has faced tribulations with tech, like display screens, and other hardware for offices, trade shows, and brick-and-mortar advertising. Companies must confront a real dilemma to either absorb these higher costs and lose revenue or raise prices putting the responsibility on the consumer and potentially loosing valuable customers in the process.
Supply chain issues are also a real problem, causing long delays for product availability and marketing collateral, which in turn affects not just the goods themselves, but the customization of these goods, their quality, and subsequent promotions. Businesses are choosing lower-cost items that are available quicker and no longer seeking custom items, opting for generic goods rather than branded pieces.
Small businesses are drastically slashing their marketing spend to combat these rising costs. Other organizations have decided to shift towards domestic goods, and while some of these goods can be higher quality and offer the appeal of being made in the USA, they are still more expensive, limiting their quantity and the scope of a business marketing campaign.
With a limited budget, businesses must be more strategic, not just with their goods and services but how they market them. While some organizations are now relying more heavily on organic marketing efforts like Search Engine Optimization (SEO), social media, email, and word of mouth, others are just making smarter choices with the promotions they do undertake.
Now more than ever, there is a larger focus on a marketing campaign’s return on investment (ROI) and while stricter scrutinization may be necessary, it should not make us fear nor neglect the importance of advertising.
Businesses must now invest in versatile promotional products with longer staying power. For example, products that customers find useful and will keep for an extended period, such as branded drinkware, bags, pens, notebooks, planners, post-its, magnets, calendars, household items, tech, cookware, fitness products like custom yoga mats, and even games like personalized pickleball sets.
Moreover, businesses must do their due diligence to seek out reliable providers of these promotional items. The mark of a good organization is one that can pivot even in times of tribulation. Good luck out there!
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