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In an effort to bring more manufacturing back to the United States and to pressure foreign countries, President Donald Trump recently announced increased tariffs on goods from Mexico, Canada, and China.
So far, he’s imposed 25% tariffs on all steel and aluminum imports, as well as 25% tariffs on other imports from Mexico and Canada along with a 20% levy on Chinese goods. He’s also added a baseline tariff of 10% to a number of countries on their imports to the US including Ukraine, Australia, New Zealand, Singapore, Brazil, Turkey, Colombia, Argentina, El Salvador, the United Arab Emirates and Saudi Arabia.
Economists are warning that higher tariffs will result in higher prices for consumers, and they may also reduce the range of products available by making some importation unprofitable.
For those in the event industry, this translates to increased costs for things like booth builds, signage, lighting, and even venue operations. These policies can also lend themselves towards impacting corporate travel, with companies sending fewer international representatives to trade shows and conferences, and more exhibitors may decide not to participate in events because of the costs.
The potential upside? Rising costs may inspire renewed interest in hybrid and virtual events because they are more cost effective.
Will This Lead to Event Budgets Increases?
Short answer, probably not. Budgets will most likely stay the same or even decrease according to event professionals. Instead, clients and event planners will need to strongly define priorities and goals. Event planners needs to proactively engage stakeholders in open conversations about these implications and discuss the difficult trade-offs that will soon arise. Having a clear understanding of event priorities and intended outcomes should help frame these conversations and determine what elements can realistically be scaled back or even removed.
What Can Event Curators Do To Lessen The Potential Impact?
Overall, curators needs to rethink sourcing strategies and explore local and domestic suppliers to mitigate potential pricing shifts, as well as consider adjusting event timelines. Now is also the time for curators to proactively incorporate hybrid and virtual event formats into their strategic planning now rather than waiting to react.
Potential Verbiage
It’s not imperative on the specific consumer group, rather it be elites, budget consumers, and middle America, and various demographics cohorts.
“We’re going to be completely transparent about the impact of tariffs on our business because all Americans should be able to see how they affect our prices.”
“We have to make a hard choice between raising prices and maintaining our employees’ salaries and benefits, and right now we’re doing all we can to protect our employees’ and their families.”
“Price increases are hopefully temporary while we explore new domestic suppliers and other cost reductions.”
Key Tips To Take Away
Know your industry: Some industries require more explanation because consumers won’t anticipate tariffs causing rising prices. But in all cases, some simple definitions will be required upfront.
Leverage experts: and/or stress the relevant expertise of the leader.
Stress transparency: in communicating about the challenge and establish that a top priority of the business leader is protecting the company’s employees from harm.
Detail concrete specific action steps to combat price hikes: cutting executive pay and exploring shifts in manufacturing and supply.
Communicators Cheat Sheet
Communicate clearly: Develop consistent brand messaging that explains what tariffs are and how the supply chain works and how this affects your industry and business
Communicate broadly: Distribute content about how you will manage the effects of tariffs on your business across the brand and executive social media channels where your constituents are most engaged.
Leverage experts: Engage an external expert who has media credibility and understands your business and industry and can be a trusted third-party validator of brand messaging
Think long term: Counsel business leaders in your network on what course of action will benefit the long-term relationship with the customer.