Proposed tariffs’ effect on marketing budgets
Many marketers, particularly in retail, are wary of looming tariffs. Trump has said such costs would include a 25% tax on goods coming in to the U.S. from Canada and Mexico, as well as an additional 10% on products from China. While the impact may not be felt until the second half of the year, costs will most certainly rise for consumers, creating a marketing challenge for brands, according to Polly Wong, president of digital marketing agency Belardi Wong.
“Everyone is worried about the tariffs,” she said. “There are a lot of ways companies can respond to an increase in product cost, but it could very well be a combination of potential increased prices to the consumer and also impact the marketing budget—you have to make it up somewhere.”
Nowak said that the tariffs could impact Evereve’s supply chain and also noted that consumers remain leery of price increases.
“People are spending less and they’re being more careful with their dollars,” he said. “The reason marketing gets cut first is because it’s seen as this amorphous brand love, brand magic.”
Nowak plans to stay closely aligned with Evereve’s CEO and chief financial officer in the coming months to continually endorse the value of marketing.
Restaurant chain Chili’s is also watching a value-searching consumer who isn’t going away in 2025, according to CMO George Felix.
“We’ll keep finding creative ways to promote messaging around our $10.99 3 for Me meal,” he said, noting that two years of the offering have helped customers trust it more than “other limited-time offers popping up in the fast food and casual dining space.”