Mayday, Mayday!
I’ve got some thoughts to help your month get off to a fantastic start, even if you’ve been losing sleep over the trade war situation.
The latest NielsenIQ study confirms what many of us have been feeling: consumers are growing increasingly wary about tariffs and their economic impact.
This extensive survey of 10,000 North Americans (conducted just before President Trump’s April 2 tariff announcement) reveals some telling insights about how consumer sentiment is evolving in this insanely unpredictable trade environment.
Half of Americans and a whopping 87% of my fellow Canadians already opposed tariffs even before feeling their effects.
Both groups expect negative economic consequences for at least the next three years.
Not surprising. What hit me was how differently consumers across the border plan to respond:
Canadians are doubling down on buying local. Only 11% say they’ll continue purchasing American products, while 91% plan to shop from Canadian manufacturers. Marketing here has shifted in a way I’ve never experienced in my lifetime.
Americans, meanwhile, are more likely to simply delay major purchases like cars, homes and furniture — a concerning signal for big-ticket industries.
In I Need That, I discuss how external disruptions can fundamentally alter the perceived value of products. Tariffs create exactly this kind of market disruption:
Suddenly, the same product at the same price point is perceived differently by consumers who now view it through the overlapping lenses of economic uncertainty and national loyalty.
For product makers, this volatility is obviously a threat. (I know, Duh.)
But wait. There’s more.
It’s potentially your greatest opportunity in years.
While your competitors freeze in analysis paralysis or cling to pre-tariff strategies, agile brands can capture market share by adapting quickly to these shifting perceptions.
Flexibility has never been more valuable.
A few strategic considerations:
- Supply chain origins are now a marketing feature, not just a cost consideration
- Domestic manufacturing suddenly has both practical and emotional advantages
- Value props need recalibrating to acknowledge economic anxiety
- Consumer purchase timing may shift dramatically for seasonal products
Product Payoff: Look to Lululemon for an instructive case study in navigating similar trade turbulence. During previous tariff disruptions in 2018-2019, Lulu rapidly diversified its manufacturing footprint across multiple countries while simultaneously emphasizing its Canadian heritage to appropriate audiences. (My US readers may not have seen this, just as a lot of current marketing shifts in other countries are hidden by invisible geofences.) This dual approach allowed Lululemon to maintain pricing power even as competitors struggled with cost increases. Its stock outperformed the S&P 500 by 117% during this period, demonstrating how to effectively turn trade uncertainty into competitive advantage.
Action for today: Do a quick vulnerability audit of your own product line. Highlight which products in your portfolio are most exposed to tariff impacts (either directly or through component suppliers) and which might actually benefit from shifting consumer sentiments.
For vulnerable products, brainstorm three potential ways to reposition them that acknowledge changed market conditions while still delivering core value.
How are you planning to navigate these wild trade disruptions? Are you seeing any early impacts on consumer behavior in your category?
What new opportunities can you find? (There always ARE some. You’ve got to look away from the problems to see them.)
Tap that reply arrow and share your observations — I’m building a resource on effective responses to this evolving situation.
Or reach out to my amazing team of product marketing experts at Graphos Product.