Blogs

Tariffs, trade wars & the power of consumer insights

Apr 10, 2025
Apr 10, 2025
 • 
 min read

As the complex tariff situation changes day by day–even hour by hour–consumers and brands are scrambling to figure out their next moves. This week, the President put a 90-day pause on a majority of the tariffs, specifically for countries that did not retaliate immediately to the initial round imposed by the U.S. In response, the markets ticked upward, after a week of turmoil with stocks tumbling from historic highs. Meanwhile, fears of a recession triggered by global trade wars are sweeping every sector. 

According to a recent CMO Survey from Duke University, nearly half of Chief Marketing Officers are now “less optimistic” about the U.S. economy and have decreased marketing budget due to inflationary pressures. Some DTC brands say they’re already feeling the effect of tariffs, with over one-third signaling it will impact their next purchase order. 

This period of massive uncertainty presents a crucial opportunity for brands to understand how their consumers are adapting. For instance, anticipatory buying—such as increased spending on essentials, electronics, and automobiles in expectation of rising prices—may already be underway. Suzy's advanced market research platform empowers brands to capture these evolving consumer sentiments and behaviors in real-time, offering actionable insights to navigate the complexities of the current economic environment.

Understanding consumer anxiety amid tariff uncertainty

The tariff situation has unleashed a wave of economic confusion, shaking consumer confidence to its core. In March 2025, U.S. consumer confidence plummeted to its lowest level in over four years, driven by fears of rising inflation and a potential recession linked to the new tariffs. The Conference Board's consumer confidence index fell 7.2 points to 92.9 in April, which is the lowest it’s been since the start of 2021.

This heightened anxiety is reflected in tangible–and also contradictory–shifts in consumer behavior. On the one hand, some industries are seeing immediate downturns. For example, the snack industry has experienced a notable downturn, with 42% of consumers reducing their spending on snack items. Major companies like PepsiCo and General Mills have reported declines in sales, particularly in salty and savory snack categories. 

On the other hand, some consumers are stockpiling goods to avoid anticipated price hikes. From auto dealerships to Apple and Best Buy stores, brands are reporting increased foot traffic and sales as some consumers seek to get ahead of the potential price increases.

The Imperative for Brands to Engage with Consumers

In such a challenging and volatile economic landscape, proactive engagement with consumers is essential. Brands must integrate real-time consumer insights into their strategic planning processes and establish continuous feedback loops where consumer data is regularly collected, analyzed, and acted upon. By seeking to understand how purchasing habits are shifting, brands can pivot effectively, identify opportunities to differentiate themselves amid rising costs, and make informed decisions that resonate with their target audience.

Suzy’s comprehensive consumer insights platform is designed to help brands stay attuned to these sudden shifts in consumer behavior:

  • Track shopper behavior over time: Suzy’s brand tracking and A&U surveys help monitor if tariff-driven pricing strategies are eroding loyalty, impacting brand equity, or altering consideration sets over time​.
  • Test price elasticity with precision: Use Suzy’s monadic pricing surveys to evaluate how much price fluctuation consumers are willing to tolerate due to tariffs, helping brands identify ideal price points that maintain demand without eroding margin​.
  • Uncover purchase drivers amid inflation: Leverage drivers analysis to understand which product attributes—e.g., quality, trust, value for money—are most predictive of purchase intent in a tariff-sensitive economy​.
  • Identify optimal product bundles with TURF and MaxDiff: Suzy’s TURF and MaxDiff analyses work hand-in-hand to help brands understand both what matters most to consumers and which combination of SKUs, sizes, or flavors will deliver the greatest reach. As brands face SKU rationalization or repricing driven by tariff pressures, MaxDiff identifies the most valued attributes, while TURF pinpoints the most efficient bundle to meet consumer demand and maximize market coverage.
  • Adapt messaging with qualitative agility: Research shows that consumers respond positively when brands explain the specific value proposition of their products beyond just price. Whether it's highlighting superior quality, sustainability, or personalized customer experiences, effective communication throughout the path to purchase can build trust and loyalty. Use Suzy Speaks to hear in-the-moment reactions to tariff-related messaging and identify which language builds empathy, transparency, and brand trust​.
  • Capture real-time reactions with Suzy Live: Conduct live IDIs or focus groups to deeply understand evolving consumer sentiment around brand pricing decisions, perceived fairness, and their changing expectations during economic shifts​.
  • Gauge product packaging perception shifts: With tariffs affecting raw material imports, many brands explore packaging changes. Use Suzy’s package testing solutions to see how consumers perceive redesigned formats or lower-cost materials, and if these align with quality expectations​.

Armed with this information, companies can tailor their marketing efforts, adjust pricing strategies, and optimize product offerings to meet the immediate needs of their consumers. This proactive corporate strategy not only helps in mitigating the adverse effects of tariffs but also positions brands favorably in the eyes of consumers, who appreciate responsiveness and attentiveness to their evolving needs.

Looking Ahead

As tariff policies continue to evolve unpredictably, businesses must remain agile and informed. While the challenges are significant—ranging from declining consumer confidence to rising inflation—market research provides a clear pathway for brands to navigate these uncertainties effectively. The current trade environment underscores the importance of understanding consumer behavior at a granular level. 

By investing in robust market research, brands can not only weather the storm but even position themselves for long-term success. With Suzy’s wide range of research solutions, companies can conduct surveys, test marketing campaigns, and analyze consumer sentiment within hours. Real-time insights enable brands to make data-driven decisions quickly—a crucial advantage in today’s fast-changing environment. Suzy Speaks is our new AI voice-driven methodology. Conversational surveys deliver authentic responses from consumers, helping brands to gather rich insights without the hassle or high cost.

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