The retailers Beis Bare Necessities and Fashion Nova are encouraging customers to make purchases now because President Trump’s tariffs will increase prices and they are using the trade war as a promotional tool. Bare Necessities ran a pre-tariff sale with 30% discounts while sending a message to customers that they should not worry about tariffs because they have great deals available. Beis used humor to describe tariffs as a “dumpster fire” while suggesting that customers should buy now before prices increase.
The 145% China tariffs and the temporary 10% Cambodia and Vietnam levies have forced retailers to take immediate action. According to Babson College’s Lauren Beitelspacher small brands which have restricted supply chain choices are at risk of survival. The consumer market has become cautious since February according to AlixPartners’ Sonia Lapinsky who predicts a decrease in spending. The pre-tariff promotional offers led to increased sales during March particularly for high-priced items.
The use of humor by brands helps them stay away from political controversy according to Wharton’s Barbara Kahn. The current discounting strategy helps retailers maintain cash flow but it comes at the expense of their profit margins to prepare for possible demand reductions. The retail industry faces an uncertain future because of Trump’s unpredictable tariffs which cause retailers to launch urgent promotional campaigns.
