The escalating tariff dispute between the United States and several major global partners—Mexico, Canada, China, and the European Union—is creating widespread anxiety in the marketing world. Initially announced in February, President Trump’s proposed 25% tariffs have been repeatedly delayed and revised, leaving businesses struggling to keep up. With retaliatory measures already lined up by the EU and Canada, marketers and agency executives are grappling with the potential implications for costs and consumer behavior.
A recent IAB survey highlights the widespread unease: 57% of U.S. marketers and agency executives report being “extremely concerned” about the business impact of tariffs. Agencies are preparing clients for potential reductions in media budgets as higher costs could force companies to cut back in other areas, including marketing. However, many are still waiting to see how the political developments play out before taking decisive action, as uncertainty clouds short-term forecasting.
Volatility Fatigues Marketers as Uneven Tariff Impact Hits Key Vulnerable Industries Hard
Despite being seasoned by previous upheavals like COVID-19 and earlier political disruptions, marketers are growing fatigued by the relentless volatility. Agencies are engaging in scenario planning and media mix modeling, but are hesitant to make firm moves. The ongoing wait-and-see approach is increasingly draining, even for those who have grown used to uncertainty. As one executive noted, each day seems to bring new variables that complicate planning further.
Marketers Brace for Uncertainty as Trump’s Tariff Threats Disrupt Budgets and Consumer ConfidenceNot all businesses face the same level of risk. The EU’s targeted tariffs and new import tax rules disproportionately affect specific sectors such as automotive, steel, apparel, and direct-to-consumer (DTC) companies like Shein and Temu. Meanwhile, agencies serving industries such as finance or SaaS are seeing minimal immediate concern. However, if consumer behavior shifts significantly, those sectors may also feel ripple effects in the medium to long term.
Tariff-Driven Price Hikes Force Shoppers and Brands to Rethink Spending Strategies
Rising prices from tariffs may push consumers to adapt their shopping habits. Surveys suggest over 90% of U.S. shoppers plan to change their purchasing behavior, many leaning toward domestic goods or bargain-hunting strategies. While some consumer-packaged goods (CPG) and retail clients are modeling their next steps, others are still in wait-and-watch mode, holding out for more clarity on how pricing and demand may shift.
Marketers are weighing how best to respond—whether by continuing to invest in brand-building or cutting spending to protect margins. While some brands see the disruption as a chance to strengthen differentiation and loyalty, others are preparing to scale back to only the most effective advertising channels. Flexible, performance-driven platforms like search and connected TV may benefit from this trend. Still, with so much uncertainty, agencies acknowledge that any predictions are tentative at best.
