Trump’s tariffs and your marketing: planning for a Trump presidency
It’s official. Donald Trump will once again be sworn in as President of the United States.
Trump’s key economic policy is protectionism. It’s an unusual stance for a Republican politician, but Trump isn’t the average Republican. His policies include a broad tariff on all import goods (10-20%) and a more aggressive tariff targeted China explicitly—he’s suggested a rate of over 60%.
When implemented, this will encourage businesses to onshore their supply chain where possible. Leading economists believe it will hamper economic growth and reduce efficiency, but this economic slowdown may not be evenly applied to all sectors. American manufacturers and suppliers may face upstream supply challenges but will also experience tailwinds as their products become more competitive.
Industrial marketers should anticipate the impact of this radical economic policy. For those outside the US, tactics should be more defensive. International companies trying to access the US market will need to prove value above and beyond the impact of tariffs.
This might involve brand marketing. Consider store brand cola versus Coca Cola. Both are effectively the same thing, yet one is twice the price—and outsells the cheaper store brand.
Cost isn’t everything. Businesses value relationships, consistency in their process, and quality of goods. They don’t like introducing risk, which is precisely what swapping suppliers does. For international marketers, it’s all about framing these benefits as more valuable than the cost of tariffs.
US companies will benefit as their goods become more cost-competitive with cheaply made international options, but will need to address the same challenge as international companies—just in the opposite direction. Displacing an existing supplier is about so much more than just cost. Competitive pricing might get you a sales call or two, but quality is what closes. Tariffs won’t allow US companies to undercut current prices. Instead, it’s likely that domestic products will cost about the same, or even a bit more, but internationally sourced products will become considerably more expensive.
To get ahead of these tariffs, B2B marketers should focus on the following:
Brand marketing. Emphasize what makes your products different, desirable, and necessary for your customers. Don’t let tariffs turn your marketing into a price-based race to the bottom!
Relationship management. Help your sales team double down on maintaining and improving existing relationships. Prove your value with excellent service. Your clients will be exploring their options right now. Make sure you remain top of mind.
Market research. Tariffs will shake up the economy, creating many opportunities—particularly for US companies. Ensure you know where those opportunities are and how to address them. Now is the time for US manufacturers to apply pressure on weaker competitors and make aggressive pitches to their clients.
The choice faced by many American B2B purchasers is to pay more to access their existing international supplier or pay about the same as they do now to switch to a domestic provider. It’s our job as marketers to help them make that choice…
…and ensure that they choose us.
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