With the announcement and implementation of the so-called Trump tariffs, businesses and consumers are bracing themselves for the inevitable financial backlash. The ripple effects of this trade policy will be felt across industries and markets, presenting a fresh challenge to businesses.
On the consumer side, tariff issues revolve around extra charges, sometimes unclear or hidden tariff charges, and other unexpected costs. The question for businesses is how to mitigate these changes while maintaining customer satisfaction in the face of the ensuing cost burden.
First, let’s talk about transparency.
Why Transparency on Tariffs Is Needed
People who are familiar with a brand don’t like unannounced changes. Sudden product overhauls, price rises, or shrinkflation will not go unnoticed, and if not communicated to the customer upfront, they will likely be interpreted as an attempt at deception or sleight of hand.
Consumer reviews on public platforms such as PissedConsumer.com document the irritation felt by customers when they encounter unexpected tariff charges. One Temu reviewer spoke of resentment at being billed over twice the cost of a purchased product after tariff charges hit:
“My order was 40.00… got billed for 92.00… no warning, nothing. I would have cancelled my order. I was very disappointed. Be careful and check your order carefully…”
Another Amazon reviewer reported being billed again after delivery of their purchase:
“Imagine buying a product from the store and then being mailed a bill for an extra 3 weeks later…I would not have bought the item for more!!”
Examples like these illustrate the emotional reaction customers have when such charges are imposed on them without any warning. Despite the tariff costs not being imposed by the business the consumers are buying from, a brand still has an implicit duty of care to clearly communicate how these costs will affect the customer.
The Consequences of Keeping Your Customer in the Dark
As well as the immediate impacts, the fallout from a poor handling of this situation can seriously damage your company’s relationship with its customers.
The shock of surprise charges will result in many abandoned carts and cancelled purchases. If the charges are applied post-purchase, then an upset customer is almost certainly guaranteed. The lasting impact of tariff complaints will be the harm that a lack of communication on the matter will do to your customer satisfaction metrics and, crucially, your reputation: trust will be impacted as consumers question whether you can be relied upon in general.
Once questioned, it can be very difficult to regain good standing in the consumer’s mind, who will often prefer to take their business elsewhere and start anew with a brand they don’t readily associate with disappointment.
How to Ease the Introduction of Tariff-Related Price Rises
While it is not the responsibility of businesses to inform shoppers of tariff impacts, customers clearly expect a brand to at least provide clear notifications, if not guidance, on how they will affect them.
You can mitigate the tariff shock and help prepare your customers with some simple actions.
Notify your customers in the first instance about any tariff-related changes to your products and shipping costs. Present a full breakdown of how the tariffs are applied in your case, and also link to external resources that explain the tariff – this goes the extra mile and shows your customer you have nothing to hide and are not exploiting the situation in any way.
Update your website, app, and customer service chatbots to include concise answers on tariff-related matters. Provide a breakdown of tariffs at the checkout that shows customers exactly how much the transaction will cost them – remove any possibility of unpleasant surprises.
Initiate an open dialogue with your customers about the tariff situation and welcome their feedback on how it is affecting them and how they feel about how your brand is negotiating the situation: What’s good? What’s bad? Ask them how you can make the experience easier for them: do this with surveys, post customer service interaction emails, and engage with online reviews and social media.
Show Customers That You Can Tackle Tariffs Together
Adaptation is the necessity, and communication is the strategy. Showing no hesitation in informing your customers how tariffs will affect them shows that you are by their side when navigating these changes. Transparency, updated processes and systems, and a helpful customer service team are how you communicate to your customers that you are doing everything possible to assist them, and that you see your relationship with them as a lasting partnership built on trust.