Early last month, President Donald Trump announced an increase in tariffs against a variety of nations. There’s a long way to connect the dots between those tariffs and local advertising, but they can be connected.
Members of plenty of industries have become reticent in recent weeks over the tariffs and what they could mean for their businesses. Fears of a recession have grown recently, which has led to some apprehension from advertisers.
“With tariffs imposed on Chinese imports, EU goods, and Japanese products, local businesses may feel compelled to reduce their advertising budgets to manage increased costs,” BIA Advisory Services Director of Data Services and Client Relations Mark Dugan wrote in a recent blog post.
Those comments come after the Interactive Advertising Bureau (IAB) released data that showed 60% of advertisers are forecasting a 6-10% decrease in their marketing budgets due to tariff-related fears.
“Such a shift could reduce overall ad spending, strengthen the focus on performance-based campaigns, and move toward digital channels that provide better measurement capabilities,” Dugan argued.
One industry that could be widely affected by the Trump tariffs — which in turn could affect local advertising — is the furniture business. During his first administration, Donald Trump placed a 10% tariff on certain materials that raised the cost of furniture prices by an estimated 2.3%. Furniture retailers are often large local advertisers, and could feel the pinch once again if the tariffs imposed by the Trump administration continue.
After the tariffs were announced in early April, a report noted that activity levels at Chinese factories fell to a virtual two-year low during the month. The Trump administration placed a 145% tariff on Chinese imports.
During a conversation with President Trump on Tuesday evening, ABC News senior national correspondent Terry Moran noted that the tariffs were likely to drive the price of homebuilding up.
While Trump rebuffed that argument, those in the real estate development industry have cited rising costs of imported materials as a likely driver of increased building prices. Hardware and home improvement retailers are expecting to see price increases of at least 10% in certain departments. Additionally, major appliance manufacturers have cited that Asian manufacturing hubs, seeing a tariff increase, will likely raise prices on their machines.
Those same materials used in home building and appliances are often also used in physical advertising like billboards and signage.
Those industries aren’t alone, however. The National Restaurant Association has shared that its members can expect a $12 billion impact in 2025 due to supply chain issues due to the tariffs.
“For instance, Chipotle’s dependence on Mexican avocados—accounting for 50% of its supply—highlights this vulnerability,” BIA Advisory Services Senior Research Analyst Suzanne Ackley noted.
While there is some concern about the tariffs and the impact they could have on local advertisers, BIA Advisory Services believes that there’s still a way for local media entities — especially the local radio, television, and digital companies — can find revenue success in spite of the turmoil.
“As businesses confront these challenges, innovative advertising strategies that maximize return on investment (ROI) will be more critical than ever,” Dugan posited. “It will be essential to evaluate which advertising channels may become more effective under tariff pressures and to implement these strategies successfully.”
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Garrett Searight is Barrett Media’s News Editor, which includes writing daily news stories, features, and opinion columns. He joined Barrett Media in 2022 after a decade leading several radio brands in several formats, as well as a 5-year stint working in local television. In addition to his work with Barrett Media, he is a radio and TV play-by-play broadcaster. Reach out to him at Garrett@BarrettMedia.com.
