U.S. policy shifts have upended marketing—how CMOs should respond

For decades, marketers have built their strategies around the traditional four Ps: product, price, place and promotion. This framework has served generations of CMOs, providing a sturdy foundation for marketing plans across industries. But in 2025, that framework is suddenly incomplete. When President Trump declared April 2 “Liberation Day” and imposed sweeping tariffs on global imports, he didn’t just disrupt global trade. He exposed a critical vulnerability in how organizations approach marketing strategy. Overnight, CMOs at Fortune 500 companies found themselves scrambling to address questions no marketing playbook had prepared them for. The global brand impact Since Trump’s inauguration in January, we’ve witnessed dramatic shifts in global sentiment toward American brands. According to a Signal AI analysis of more than 19 million articles, American brand perception has plummeted across multiple sectors: This isn’t just about politics—it’s about the fundamental relationship between policy decisions and brand value. The new marketing reality Since January, the average net favorability of the U.S. has fallen by roughly 20 points worldwide, with consumer markets in North America and Europe experiencing some of the largest declines. Canadian consumers are now among the most likely to avoid American brands, specifically due to U.S. trade policies. The impact extends beyond brand perception to fundamental consumer behavior. The University of Michigan Consumer Sentiment Index has plummeted 21 points since January to 50.8—a level not seen since the pandemic. Two-thirds of consumers spontaneously mentioned tariffs during survey interviews, with expectations of both higher unemployment and inflation reaching 6.7% in the coming year. Also read: Inside the hidden CMO job market This policy-driven sentiment shift is already altering purchasing patterns, with evidence of consumers accelerating purchases to avoid tariff-driven price increases, while credit card defaults simultaneously rise. This isn’t a temporary disruption. It’s the new normal. Those who have worked at the intersection of political communications, advertising and strategic brand development have observed this convergence building for years. Historically, addressing policy challenges was seen as the purview of high-priced DC lobbyists or in-house government relations teams who were called in primarily during times of crisis. While these specialists certainly deliver needed expertise, they typically lack the deeper understanding of a brand’s strategic goals, its place in the marketplace, and its relationship with customers that marketing strategists possess. Part of the resistance to engaging with policy has been cultural. Marketing professionals and agencies often position themselves as being “above the fray” on challenging policy issues, considering such matters outside their purview. Even now, on professional platforms such as LinkedIn, there’s visible resistance when issues mistakenly labeled as “political” are raised online, even though virtually every major business decision is driven in some way by policies at the state, national or international level. More from Ad Age This perspective represents a significant blind spot for many otherwise smart and strategic marketers. The events of the last several years demonstrate that policy as a factor in strategic decision-making has gradually moved from the background to the center of marketing strategy. The traditional boundaries between political and commercial communications have not just blurred—they’ve dissolved entirely. Why policy is the fifth P According to recent research, 94% of advertisers are concerned about tariff impacts on their advertising budgets, with 41% planning to cut social media spending first as they adjust to this new reality. Global agency groups are hurriedly assembling specialized teams of “policy translators” for bewildered clients. Marketing departments that continue to treat policy as merely an external factor—something to monitor but not directly manage—are setting themselves up for strategic failure in this new environment. Strategy first: a powerful framework Strategic communications practitioners have long advocated for an approach that can be summarized as strategy first, concept second and execution third. This methodology has never been more relevant than in today’s policy-driven market environment. However, there’s a critical limitation to this approach: Business strategists, while skilled in their domain, aren’t automatically equipped to become policy experts. What this means for the modern CMO The fifth P demands a fundamental shift in how CMOs approach their role and responsibilities. Rather than reacting to policy changes after they occur, marketing leaders need to proactively integrate policy expertise into their strategic planning process. Integrating the fifth P means: These shifts aren’t optional for brands experiencing the dramatic sentiment changes we’re seeing in the data. When a company such as FedEx experiences a 37% decline in global sentiment in just three months, traditional crisis communications approaches are insufficient. What’s required is a strategic model that anticipates these shifts before they occur. The competitive advantage Those who master the integration of policy into their marketing strategy will gain a significant competitive advantage. In an environment where challenges are diverse and unpredictable and regulations are changing by the day, the ability to anticipate policy shifts, quickly adapt to new regulatory environments and translate policy impacts into strategic opportunities will distinguish the market leaders of tomorrow. A strategy-first approach The strategy-first methodology emphasizes that strategic thinking must precede tactical execution. By starting with a comprehensive policy analysis, organizations can develop more resilient marketing strategies that anticipate disruption rather than merely responding to it. The path forward The marketing leaders who thrive in this new environment won’t be those with the most spellbinding creative or the most innovative media plans. They’ll be the ones who can translate policy disruptions into strategic opportunities – who can help their organizations navigate complexity with a Strategy First approach. This isn’t just about surviving the current tariff crisis. It’s about building a new marketing framework for a world where policy has become inseparable from business strategy. The Fifth P isn’t just an addition to our framework—it’s the recognition of a new reality that demands more sophisticated strategic thinking from all of us in communications and marketing. More: The New Yorker marks 100 years with a colorful trip through nearly 700 covers

U.S. policy shifts have upended marketing—how CMOs should respond

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