Eight Questions Advertisers Should Be Asking About Tariffs

The Trump administration transformed global trade policies by implementing a series of sweeping tariffs. Advertisers should ask the following questions.

1. How can I comply with pricing and transparency laws when my costs increase?

Tariffs are typically calculated as a percentage of a product's value, paid by importers, and collected by U.S. Customs and Border Protection (CBP). Although Trump now imposes a 10% across the board tariff on most countries, China's total tariff rates can now exceed 145%. Because tariffs often increase the landed cost of imported products, companies might need to raise prices.

When incorporating the tariffs into pricing, companies should monitor states' tariffs announcements and state price gouging laws. (COVID-19 price increases resulted in aggressive enforcement.) Companies should follow "drip pricing" laws requiring the upfront advertised price to reflect all fees (including tariffs and surcharges). Companies should brace for