Visitors are caught in the reflection of a store offering 50% off on all items on the Third Street Promenade in Santa Monica on July 16, 2024. Genaro Molina | Los Angeles Times | Getty ImagesRetailers bracing for consumer spending to drop are using President Donald Trump’s trade war as a marketing strategy, urging consumers to buy now before tariffs lead to price increases or potential shortages. A host of private and direct-to-consumer brands such as Beis, Bare Necessities, Fashion Nova and Knix have mentioned tariffs in marketing campaigns in the weeks since Trump announced his plans for steep so-called reciprocal tariffs on dozens of countries.While the administration later temporarily lowered rates for most countries, the announcement sent the retail industry into crisis mode because it is nearly impossible for businesses to plan while they don’t know how tariffs will ultimately shake out. Experts widely expect consumer spending will fall, creating challenges for companies big and small that could struggle to weather that storm. Some companies importing goods from China that now face a 145% duty have paused or canceled orders, while those with supply chains in other parts of Asia such as Vietnam and Cambodia are trying to stock up now as higher tariffs are still on pause.The exact impact varies by retailer, sector and brand. But Trump’s trade war poses an existential crisis to many retailers that make their money selling consumers products they could ultimately live without. Some brands, such as lingerie store Bare Necessities, did an outright “pre-tariff sale.” The company offered discounts of around 30% as it told consumers to “stock up before tariffs hit.” “Tariffs? No clue. A good deal? We got you. Save up to 30% before prices shift,” Bare Necessities said to customers in a text message. “We didn’t know how to spell tariff last week, but we do know this: up to 30% off is a good idea!” it said in another message. Temporarily lowering prices as brands brace for costs to rise might feel counterintuitive, but anything retailers can do to “shore up their overall financials” ahead of a potential drop off in spending is a smart move, said Sonia Lapinsky, a partner and managing director at consulting firm AlixPartners. “Retailers should be doing anything they can to get as much demand as possible, as soon as possible, because from our perspective, things are going to really fall off a cliff. … We’ve been seeing a very skittish customer since about February, March, and it’s only gotten worse as the tariff talk has …
