25% Trump Tariff: How You Can Mitigate Blowback

If you represent a Canadian consumer packaged goods (CPG) brand selling in the US, you’ve likely been on edge about the 25% tariff Trump has threatened over the past few months. Well, the threat has become that much more tangible, as several news outlets reported yesterday that the tariff could be in place as soon as Feb 1st, 2025 (two short weeks).?

While it creates uncertainty, it’s essential to remember that these challenges can lead to innovative solutions. Let’s explore practical strategies to help your brand navigate this hurdle, maintain a strong foothold in the US market, and capitalize on ways your brand could be more profitable right here at home.?

1. Strengthening US Partnerships Through Reevaluating Supply Chains?

First things first, it’s time to examine your supply chain closely. Tariffs can significantly inflate the cost of goods sold, making your products less competitive. One strategic approach is to source materials or even consider manufacturing a portion of your products within the US. This can help you dodge the tariff altogether. Establishing a local supply chain can reduce costs and tap into the growing consumer preference for domestic products. Plus, it might even improve your delivery times and overall logistics.?

2. Reimagining Your Pricing Strategies

Reimagining your pricing strategy in response to the tariff could prove crucial. While you may be tempted to absorb the costs, that is only a short-term solution. If you must raise prices, you may consider bundles and promotions to mitigate perceived cost increases.?

3. Strengthening Brand Identity?

Now’s the time to showcase what makes your Canadian brand unique! Emphasizing your products' quality, value, and distinctiveness can resonate with consumers, especially in a landscape filled with choices. Highlight your stories, ethics, and the excellent quality Canadian products are known for. ??

4. Diversifying Market Strategies?

Don’t put all your eggs in one basket! While the US market is vast and lucrative, consider exploring additional markets with fewer barriers. For instance, look towards countries that have favorable trade agreements with Canada. You can leverage your US distribution networks to reach new markets, creating a buffer against tariff-related risks.?

And how about selling more right here at home? Don’t discount your listings in retailers across Canada or your ability to AMP eCommerce sales. All it takes is a little reinvestment into your brand for significant potential gains.?

Partnerships with merchandising partners enable you to scale results at the retail level without a massive team overhead.?

Merchandising partners can also help you work on in-store marketing strategies to increase sales.?

Investing in eCommerce that can monetize. We often see brands that haven’t done this, and this can unlock powerful new revenue. Depending on what you develop, it could even entitle you to huge tax credits.?

5. Collaborating and Partnering

Collaboration can be a game-changer. I touched on this in some previous points. Expand your network of partners and resources! Join forces with other Canadian brands or U.S.-based companies for joint marketing campaigns or co-branded products.?

This not only helps to share the burden of the extra costs but also broadens your audience base. If you don’t have those relationships, talk to vendor partners about who else they work with to see what you can organize collectively. Consumers love partnerships that result in innovative products, offering them the chance to stand out amidst the fierce competition.?

6. Advocacy and Staying Informed?

Lastly, don’t underestimate the power of advocacy. Engage with trade associations and lobby for policies that support Canadian brands. By staying informed about trade regulations and engaging with lawmakers, you can contribute to the collective voice that seeks to reduce tariffs or find other solutions.?

In conclusion, while the 25% Trump tariff poses challenges for Canadian CPG brands in the US, it also opens the door for creativity and adaptation. By reevaluating supply chains, refining pricing strategies, embracing your brand’s identity, diversifying markets, collaborating with others, and staying politically active, your brand can survive and thrive in these dynamic times. Cheers to innovation and resilience!

If you would like to explore strategies to mitigate blowback from the impending Trump tariff, please email Marketsupport CEO Sara Clarkson at?[email protected]?or visit?www.marketsupport.ca.