Sales and Marketing - Jen Jordan

How Small Businesses Should Inform Customers About Tariff Impacts

As global trade policies evolve, tariffs have become a significant factor in the cost of goods and services.

For small businesses, especially those relying on imported materials or products, these changes can directly affect pricing, margins, and customer trust.

Communicating transparently with customers about how tariffs impact your business is essential for preserving loyalty and maintaining integrity. Here are some insights on how to communicate the impacts of tariffs on your business.

Be Transparent and Educate

The first step is transparency. Customers appreciate honesty, especially when it comes to price changes.

Rather than simply raising prices, be transparent about the reason. If a tariff has increased your cost of goods by 15%, show your customers how that affects the final product price. If possible and practical, be specific about which products or components are being affected by tariffs.

Use simple language and avoid industry or political jargon. For example: "Due to recent tariffs on imported steel, our manufacturing costs have increased by X%. To continue providing high-quality products, we’ve adjusted prices accordingly."

Resources like the U.S. Chamber of Commerce provide regular updates and breakdowns of tariff policies and their implications on small businesses. Some small businesses may consider including links to resources about tariff policies.

Use Multiple Channels

Not all customers engage with your business in the same way or via the same avenues. Use multiple forms of communication to communicate critical changes or updates:

• Email newsletters: Ideal for in-depth explanations of any updates or changes impacting your customers.
• Social media: Useful for quick updates and feedback. Be cautious, as many people may not read any further information. Assume whatever you put on a social media post is the only information the reader will consume about your announcement.
• In-store signage: If you have a brick-and-mortar location, consider posting in-store signage about any price or policy changes.
• Website banners or pop-ups: Notify your online shoppers with website banners and pop-ups. Where possible (and applicable), attach those notifications to particular products that upcoming price or policy changes will impact.

Ensure that your messaging is consistent across all platforms to avoid confusion. Clarity is key when sharing critical updates with your audience.

Emphasize Your Commitment to Quality and Service

When customers see price increases, their first assumption might be profit-driven motives. Reassure them that maintaining product quality and service levels remains your top priority.

Consider including value-based language, such as: "We’re committed to sourcing ethical, high-quality ingredients-even amidst the shifting global trade policies. While this may slightly impact our pricing, we believe in delivering products you can trust."

Offer Alternatives or Promotions

If you anticipate pushback, consider offering alternatives or temporary promotions. For example, if one product line becomes more expensive due to tariffs, identify alternative products that are less affected (or unaffected). Alternatively, run a limited-time discount to ease the transition for loyal customers.

Train Your Staff

If you run a retail location or a customer-facing business, your staff should be well-informed before any price or policy changes. Provide talking points or FAQs so they can confidently address questions about price changes or supply chain shifts.

Consider scheduling in-person staff training to review the upcoming changes, role-play any difficult conversations you expect to have with customers and ensure they’re fully equipped to provide quality customer care.

Keep It Brief and Empathetic

While it’s important to explain the impact of tariffs, don’t overwhelm customers with policy details. Focus on what they need to know and how you’re working to serve them despite the challenges. Always lead with empathy-acknowledge their concerns and– thank them for their continued support.

Tariffs are out of your control, but your customer communication is not. By being proactive, honest, and customer-focused, small businesses can maintain trust-even when prices go up. It’s not just about explaining the "what," but the "why"-and doing so with clarity and care.

Works Cited

https://www.oldnational.com/resources/insights/how-tariffs-affect-small-businesses-and-tips-on-how-to-navigate-them/

https://www.forbes.com/sites/dangingiss/2025/04/04/how-to-talk-about-tariffs-with-your-customers/

https://blog.hubspot.com/service/price-increase

https://mailchimp.com/resources/price-increase-letter/