With 80% of Americans concerned about tariffs, marketers must decide how to act

More signs point to an economic downturn as new Kantar research finds that 80% of U.S. consumers are concerned about the impact the Trump administration’s imposed and enacted increased tariffs will have on their finances and spending. In its new report, Kantar found that U.S. consumers are “restraining spending across all shopper demographics due to economic pressures of inflation and tariffs.” The firm’s research shows that Americans are now hunting for deals, spending primarily on groceries and limiting discretionary purchases, plus switching to private labels. See all of Ad Age’s 2025 Agency A-List winners here “Clearly, if tariffs are 30%, 40%, 50%, you simply can’t absorb those levels of tariffs, so it will be passed on to consumers,” Kantar Americas CEO and Global Chief Client Officer Wayne Levings said. “That opens up opportunities for private label. Retailers will definitely look to source alternative ways of finding products that they think are going to add better value to American consumers.” There are, however, certain discretionary purchases in demand due to consumer anxiety over the seemingly downward-trending economic landscape. Kantar found that 82% of Americans are spending on “products or services that will enhance their sense of emotional wellbeing and relaxation.” How brands are planning for possible downturn Levings said Kantar’s brand clients are currently bracing for further tariff increases and possible sales declines, but right now their biggest concern is the uncertainty surrounding the situation. “Business in and of itself prefers certainty, even if that certainty means a high tariff or whatever,” he said, “because it allows them to plan, to be able to make investment choices, to be able to launch campaigns.” This unpredictability is causing some brands to delay making marketing decisions, Levings said. He said the industry will likely see fewer brands investing in “major repositioning” or innovation through new product launches until they have a clearer understanding of what tariffs will be implemented and for how long. Imposed and enacted tariffs have already resulted in early warning signs of a years-long anticipated recession, as well as left brands scrambling to explain price increases to consumers. Maple Leaf Foods recently hit back on U.S. tariffs affecting Canadian consumers in a campaign that also encouraged other brands to take a stand against them. Why inclusivity matters more than ever Against the backdrop of a possible economic downturn, Kantar’s research found that inclusive messaging matters more than ever—that finding comes as an increasing number of brands, from Walmart to Meta, are pulling back on diversity, equity and inclusion efforts. Kantar found that almost seven in 10 Americans consider inclusion important to buying decisions. Diverse consumer segments now represent $7 trillion in buying power in what is considered a new mainstream economy, Kantar said, noting that the buying power of diverse audiences is growing 1.3 times faster than non-Hispanic whites. Meanwhile, twice as many people (48%) like the general idea of DEI and are willing to abandon a brand that walks it back. Another 21% do not support DEI and will embrace a brand that walks back its DEI efforts, according to Kantar. (The remainder were undecided.) Kantar said diverse populations continue growing: 49% of Gen Z and 52% of Gen Alpha identify as diverse, and 88% of Gen Z and 89% of millennials agree that it’s important for brands to promote DEI. Additionally, Kantar found that 61% of Gen Z and 56% of millennials report DEI either always or often influences buying decisions. “It should be obvious to marketers that the more you can appeal to as many people as possible, the better it is for your business, your brand and your sales,” Levings said. Kantar research also shows that consumers are more loyal to brands with inclusive messaging—what are viewed as more inclusive campaigns are benefiting with 3.46% higher short-term sales and 16.26% higher long-term sales, with these brands seeing 15% higher loyalty and 23% lower chance of being abandoned after trial. Levings said while he’s seeing more brands pull back on openly supporting social causes, which they increasingly did in the early years of the COVID-19 pandemic, many are still focused on targeting diverse consumer segments. The importance of being green Kantar’s research also found that the majority of U.S. consumers “expect brands to do the right thing by the environment,” Levings said, noting that most brands understand this and likely will not pull back on the sustainability commitments they’ve made despite the financial climate. Kantar’s research found that 82% of Americans said they want to make sustainable choices and 35% are actively changing their behavior when it comes to sustainability, but 66% are still worried that brands are only enacting green initiatives for commercial reasons. That last stat could suggest now is not the time for brands to pull back on green initiatives.

With 80% of Americans concerned about tariffs, marketers must decide how to act

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