Tariffs Are Up, Costs Are Rising – Why Cutting Marketing Now Is the Worst Move
You're not alone if you're a small or mid-sized business leader staring down ballooning import costs. With the U.S. imposing sweeping tariffs, 10% on all imports and a staggering 145% on Chinese-made goods, businesses are feeling the pinch. From raw materials to finished goods, the cost hikes are squeezing margins. Retailers and consumer brands are pivoting their focus from the U.S. to Europe and other global markets to mitigate adverse effects on U.S. consumer demand caused by rising prices and economic uncertainty.
What the Tariff Tsunami Means for Your Bottom Line
The recent tariff hikes are causing significant disruptions across various industries. The unpredictable trade policies have forced businesses to downsize and abandon retail partnerships, transitioning to an online-only model. Major corporations report weakened demand and rising operational costs due to steep tariffs on goods between the U.S. and China.
It's tempting to cut marketing budgets to save costs. But history tells us that's a mistake. During the Great Depression, Kellogg doubled its ad budget while Post cut back. The result? Kellogg's profits increased by 30% by 1933, establishing it as the market leader. Similarly, during the 2008 recession, Samsung maintained its marketing spend and focused on rebranding itself as an innovation company, which paid off in the long run.
What Happens When You Snuff Out Visibility
Cutting marketing when things get uncertain is like deciding not to communicate with your customers during a breakup. Visibility is like a candle in a dark room. Snuffing it out won’t make it any easier to move around the darkness; it’ll only leave everyone unable to see what’s around them. Out of sight, out of mind. Go quiet, and your audience will forget all you’ve done for them.
In today's digital age, consumers are constantly searching for information, and if your brand isn't present, they'll turn to competitors who are. And as generative search tools like ChatGPT continue to grow, consistent branded content is even more valuable since ChatGPT relies on available data to provide answers. Going dark just puts you in the dark, it does nothing for guiding you in the right direction.
Smart Businesses Don’t Cut, They Reallocate
We get it: when margins tighten, marketing budgets are the first to look suspiciously optional. But cutting spending altogether is like trying to save gas by removing the steering wheel.
The smart move? Shift those dollars into channels that punch above their weight and build long-term traction without draining your runway. Instead of slashing budgets, reallocate. Focus on high-efficiency, low-cost strategies:
Content Marketing: Create valuable content that addresses your customers' pain points.
Organic Social Media: Engage with your audience where they spend their time.
SEO Optimized for Generative Search: Ensure your content is discoverable.
Building First-Party Data Lists: Reduce reliance on paid ads by nurturing your own audience.
The time is not for spending more, it’s for spending smarter. The brands that thrive in turbulence aren’t throwing money at ads; they’re investing in systems that build equity, trust, and discoverability. That’s not panic, it’s strategy. And right now, strategy sets the players apart from the bench. Consumer behavior is shifting, with panic buying patterns creating new opportunities for relevant content and offers. Don’t let those opportunities pass you by.
Reassess Your Supply Chain Story
Your supply chain may feel like a liability right now, but handled right, it’ll become a compelling part of your brand story. Customers want transparency and resiliency; they’re watching how businesses adapt. Instead of just scrambling behind the scenes, this is your chance to turn operational pivots into marketing assets. Yes, even sourcing drama can be spun into brand loyalty.
Launch Low-Budget, High-Loyalty Campaigns: Focus on customer retention.
Optimize Your Owned Media Channels: Enhance your website, blog, and email marketing.
Build a Lead-Capture System: Implement strategies for long-term re-marketing.
Prepare Messaging That Balances Urgency with Reassurance: Communicate effectively during uncertain times.
Short-term action now can lead to long-term gains later. This is the part where scrappy beats splashy. You don’t need a Super Bowl budget to build trust; you need consistent communication, clear value, and a plan for staying top of mind when others go quiet. Think of it as crisis-proofing your brand, one smart move at a time. Your future Q4 self will thank you.
Brand Is a Long Game (And That’s Exactly Why You Shouldn’t Pause)
Brand awareness compounds, especially when competitors go quiet. Past recessions show that businesses that maintain their brand presence during downturns emerge stronger, with more market share and fewer competitors. Voice search and AI recommendation systems favor brands with consistent, quality content, making it even more crucial to stay active.
But We Get It—You’re Under Pressure
We understand the financial pressures you're facing. It can be daunting to think about how to best invest in marketing while still being reasonable with your budget. Check out these quick wins that are good for every business:
Repurpose Existing Content: Update old blog posts and refresh evergreen pages for SEO.
Strategic Consulting: Focus on strategic planning rather than just ad-spend.
Scrappy Marketing: Even limited marketing efforts can make a significant impact.
You need a smart plan, a few high-leverage moves, and someone to talk you out of panic-pausing your blog for six months. Repurposing, consulting, and scrappy execution are not signs of weakness, they’re signs of a business that knows how to adapt without unraveling. Think of it like marketing judo: small moves, big results. The focus right now may not be to go big, it might be just to stay in the game.
Don’t Go Dark, Get Strategic
Yes, prices are up and tensions are high. But innovative businesses can get scrappy, stretch their spend, and come out stronger than those who go dark. By reallocating marketing budgets to high-impact areas, focusing on value-driven strategies, and maintaining visibility, you can navigate the storm and set yourself up for long-term success.
And if you’re wondering how to actually do all this without pulling late-night content marathons or accidentally boosting your competitors’ SEO, that’s what we’re here for. At Trueffle, we help brands like yours stay loud (in all the right ways), stretch your budget (without watering down the message), and build strategies that work (even when the economy’s throwing curveballs). If you’re ready to get scrappy, strategic, and unstoppable, come say hey. We’re always game for a conversation that leads to clarity.
