Retailers brace for round two of Trump tariffs

It’s Friday!

Amazon’s virtual holiday shop introduces an interactive 3D experience, combining festive music, animations, and AI-driven gift guides to enhance product discovery—an innovative approach for e-commerce brands looking to elevate customer engagement. The platform highlights top brands like Lego and Kate Spade, offering a model for immersive seasonal marketing that keeps shoppers exploring.

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Retailers brace for round two of Trump tariffs

With Trump back in office and tariffs on the table, brands like Steve Madden are fast-tracking their plans to reduce dependence on China. Trump’s proposal—potentially 10-20% on all imports and up to 60-100% on Chinese goods—has retailers bracing for impact, especially those heavily reliant on overseas manufacturing.

What’s shifting?

Steve Madden is planning to cut its China sourcing by up to 45% within the next year. CEO Edward Rosenfeld said that while they’ve already been exploring options in Vietnam, Cambodia, and Mexico, the new tariffs pushed them to move even faster. Currently, over 70% of their U.S. imports come from China, so reducing this reliance is a top priority to avoid a big tariff hit.

Who else is preparing?

Madden’s not the only one making moves. Brands like Tapestry (Coach and Kate Spade’s parent company) already source under 10% from China and are ready to pivot. E.l.f. Beauty has also gradually shifted production away from China, with CEO Tarang Amin hinting at possible price hikes if new tariffs kick in. Tapestry’s CFO, Scott Roe, mentioned that they’ve learned to be nimble, given years of disruptions—from port strikes to fluctuating tariffs.

Industry concerns: Trade groups are warning that these tariffs could mean pricier goods for consumers. The National Retail Federation estimates that tariffs on all imports, especially the steep China-specific ones, could add an extra $46-78 billion annually to Americans' bills. Retailers and trade associations are pushing for alternatives like the revival of the General System of Preferences, which would allow duty-free imports from qualifying countries.

What’s next?

As Trump pushes for more production to come back to the U.S., brands are balancing the appeal of “made in America” with the reality of higher costs. For now, retail execs are keeping a close eye on policy updates and prepping for potential cost increases ahead.

Updates ☕️

📈 Pinterest has reached a new record high of 522 million monthly active users in Q3 2024, adding 4 million users this quarter.

💸 Swedish brand Our Legacy gets a big investment from LVMH.

🚀 Instagram now allows boosting for more post types, including most GIFs and stickers, giving creators more ways to amplify top-performing content.

🇨🇦 Canadian government orders shut down of TikTok’s local operations. TikTok staff will be forced out of Canada, but the app will remain available in the region.

📵 Australia plans new social media restrictions for under-16s to curb harmful online exposure.

💼 YouTube Shorts creators can now request brand partnerships, helping them monetize content by promoting brand-related Shorts.

🌟 MCoBeauty’s clever move: bringing a Timothée Chalamet look-alike to NYC’s viral contest helped boost its U.S. brand presence with a pop culture-inspired marketing win.

Why brands like Saie are betting on real-life experiences

In a world dominated by digital ads and online influencers, beauty brands like Saie are diving deep into in-person events. Here’s why top brands are embracing real-life experiences to build lasting consumer connections.

Building real connections: Events let people experience a brand beyond just the product—think immersive, fun, and memorable moments. By hosting unique experiences, brands create emotional ties, linking their name to positive memories and relationships.

Social media boost: Even small events can create big waves online. Attendees post about their experiences, turning each event into a powerful marketing moment that reaches far beyond the venue. This ripple effect amplifies the brand’s visibility, giving each in-person moment a digital life of its own.

Content goldmine: One well-executed event can fuel weeks of engaging content. Photos, videos, and testimonials keep the experience alive on social, email, and ads, reinforcing the brand’s presence long after the event is over.

By investing in real-life experiences, Saie and other elite brands are setting a new bar for consumer engagement that’s both memorable and shareable.

NOTES 📝

Today’s top marketer & brand reads.

Read: Amazon’s beauty sale was a mixed bag for some brands (ModernRetail)

Guide: TikTok publishes new guide to post-Christmas marketing (TikTok)