2025 has been a whirlwind for manufacturers. President Trump enacted tariffs on imported goods, imposing a 25% duty on products from Mexico and Canada, and a 10% duty on Chinese goods. This action prompted swift threats of retaliatory tariffs from both Canada and Mexico. Mexican President Claudia Sheinbaum and Canadian Prime Minister Justin Trudeau (who announced its own 25 percent tariff on U.S. goods) brokered deals to delay the tariffs for a month.
The best-case scenario for the tariffs is to protect and grow American manufacturing – however, manufacturing companies are all being affected differently. American manufacturers are busy and absorbing even a fraction of the demand from China or Mexico is nearly impossible.
Regardless of tariffs, it’s essential that manufacturers make investments to lower supply chain disruption risk, stay on the leading edge of innovation, and provide higher wages to capture top talent. But will manufacturers make the investment? It’s uncertain how long-term these tariffs will be. For example, during the pandemic, hospitals were desperate for locally made goods. When those same goods became available for cheaper from companies outside the U.S., they switched back to the most cost-effective option. This is a compelling case for the overall hesitancy for massive investments. Where can manufacturers begin to plan for the future? Even with so much still unknown?
Prioritize Digital Marketing
Cost Efficiency & Measurability:
- Digital marketing consistently offers lower costs per lead compared to traditional methods, with more precise ROI tracking. This is critical when budgets are tight.
- Analytics enable real-time adjustments, optimizing spend on high-performing campaigns.
Market Diversification:
- Tariffs may close certain markets; digital channels allow rapid entry into new regions (e.g., via localized SEO, social media ads, paid search) with minimal upfront investment – meaning campaigns can ebb and flow with demand.
- Moving to an eCommerce platform can offset lost export revenue by tapping into domestic or untapped international demand.
Consumer Behavior Shifts:
- Economic uncertainty drives more online shopping. A strong digital presence (e.g., SEO, social commerce) captures this demand.
- Content marketing (blogs, videos) can help justify price hikes caused by tariffs by emphasizing product value and differentiation.
Customer Retention & Loyalty:
- Email marketing, personalized ads, and loyalty programs retain existing customers, which is cheaper than acquisition during downturns.
- Social media engagement builds trust and community, insulating brands from price-sensitive decisions.
Competitive Advantage:
- Competitors may cut marketing spend; maintaining or increasing digital efforts can capture market share and enhance brand visibility.
- Companies that maintained or increased digital marketing budgets during past recessions gained 3x more market share than competitors who cut spending.
By investing in these digital tools now, U.S. manufacturing can not only capture market share as supply chains reconfigure but also foster long-term loyalty as domestic production becomes a strategic imperative—not just a reaction to trade policies.
Is your marketing partner talking to you about the implications of your digital marketing strategy? Are they aware of what’s truly at stake with these changes? If not, it might be time to rethink your plans for 2025 and beyond.
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