Tariff Transparency: If Brands Have to Raise Prices, Keep Customers in the Loop

Sign up to get the latest global brand, media and marketing news and analysis delivered to your inbox every morning.

The full impact of President Trump’s tariff policies has yet to hit, but consumers say they’re already noticing higher prices on everything from meat and eggs to home appliances because of them. Brands are feeling it too: the end of the de minimis exemption for Chinese goods had a big impact on Temu’s users in May. 

The administration’s constantly shifting tariff rates and deadlines makes it extraordinarily difficult for brands to plan inventory, set prices and maintain trust with their shoppers. We know that raising prices is a last resort for most, but many brands simply can't afford not to pass through at least a portion of the new tariffs. 

Communicating those price increases to customers is tricky business. Some brands would prefer not to call attention to the changes, while others are choosing to be more upfront. We set out to understand what customers are seeing from brands now, and how they’re reacting to messages about tariffs. 

Tariff communications that help customers save money are most commonplace

Beyond hearing about tariffs from the news, consumers have also heard about brands trying to help their own customers get ahead of potential price increases. More than a quarter (27%) of respondents said a company they purchase from has told them to shop now before prices increase, and an additional 30% of customers say they have heard this type of communication from companies they don’t purchase from. Other brands have pinned sales specifically to tariffs, which nearly as many consumers say they have seen.

Less common were communications explaining how tariffs will impact prices, or actually seeing tariffs as line items on receipts — though the latter may change as more tariffs are actually implemented. 

Consumers are generally in favor of hearing tariff messaging from brands, especially if those communications help save them money. About two-in-three consumers think messaging about sales ahead of higher prices, or warnings of high prices to come are “very” or “somewhat” acceptable (64% and 62%, respectively).

Of course, partisanship is apparent in these results: Republicans are more likely to have negative opinions about brands messaging about tariffs, while Democrats see these messages in a more positive light.

Consumers have a favorable view of companies that are transparent about tariffs

If your brand does have to increase prices for consumers due to tariffs, communicating those changes goes a long way toward retaining your customers’ trust. When asked which words describe companies who do communicate their tariff-related price changes, consumers selected smart over foolish, practical over impractical and trustworthy over deceitful. On the other hand, when asked what words describe companies who do not communicate tariff-related price changes to their customers, respondents were more likely to see those brands as unpatriotic, cowardly and unethical.

Here, both Republicans and Democrats agree that communicating pricing changes is the ethical, and even patriotic, choice for brands. 

Saying something about tariff-related price changes is better than saying nothing

To better understand how consumers respond to different tariff communication tactics, we tested three different tariff communications, modeled after real-world brand messages. The test included:

1. Message 1: A very straightforward message explaining that the brand would have to increase prices due to the new tariff’s impact on their operating expenses, similar to Temu’s post on their website. 
2. Message 2: An informal, slightly chaotic message explaining that the brand was likely to raise prices but still struggling to determine their own path forward, similar to Beis’s viral customer communication.
3. Message 3: A screen shot of a fictional clothing store receipt with a line item tariff fee

The most specific message — the one displaying the actual tariff cost on a receipt — was the most neutral, but least desirable in consumers’ eyes. While 40% of consumers did say they want to see itemized tariff surcharges, that clearly needs to come with additional messaging. The receipt line item was seen as least transparent, and most likely to be viewed as an excuse to raise prices. 

A plurality of respondents (40%-46%) saw each message as neutral, rather than positive or negative. Message 1, the straightforward explanation, was seen as positive by the largest share of respondents (40%), and message 3, the receipt line item, was seen as negative by the largest share of respondents (28%). Partisanship was again apparent in this test, where Republicans were most likely to view all three messages as negative, given they counter the president’s assertion that tariffs won’t be passed on to consumers. 

The data is clear: Brands have to be upfront about the impact of tariffs on consumer prices. It’s imperative to avoid late-funnel surprises like tacking on fees in the e-commerce shopping cart. Your brand voice and audience should guide the tone of the message, but if you must raise prices, transparency is a must.