At the time of writing, DTC brands are navigating a 145% tariff on Chinese goods, a 10% flat-rate tariff on imports globally, and a chaotic trade policy that changes weekly.
The environment is volatile, and predictability has gone out the window. By the time you read this, I’d wager the numbers above will already be outdated.
It’s a tough time to run a DTC business. It’s not like it’s normally known for being a particularly leisurely line of work; however, current global turmoil and economic upheaval have only increased the difficulty.
What’s consistent is the uncertainty, and how quickly brands are having to adapt.
As the founder of a performance creative and marketing agency for DTC CPG brands, I have a front-row seat to how this is affecting acquisition, supply chains, and consumer behavior. Some brands are pulling back on marketing. Some are going all in. All are trying to find their footing.
Here’s what we’re seeing across the portfolio and how we’re helping clients adjust.
Roughly a third of our clients rely heavily on goods from China. They’re being hit the hardest and fastest. One brand in this group pulled back 90% of their ad spend overnight to avoid selling through inventory they couldn’t replace.
Another third have partial exposure. They manufacture outside China in places like India, Canada, and Mexico. They’re feeling the squeeze from creeping global tariffs. One client that receives goods from Canada is considering raising prices by 15% and eating another 10% just to keep margins stable.
The final third of our clients aren’t directly affected by tariffs as they manufacture in the US. But the ripple effects are very real. One brand in this group is already running forecasts that model a broader economic fallout with rising costs, geopolitical tension, and inflation pressure leading into a recession.
We think about these levels of exposure as a set of waves:
Right now, we’re in triage modem, especially for the brands most impacted by Wave 1.
These teams are frustrated, confused, and navigating a lot of unknowns. But across the board, they’re showing up for their employees, communicating with their customers, and adapting fast.
Here’s what we’re advising our clients impacted by Wave 1 to do.
If you don't feel comfortable with the inventory you have in stock, or you're losing too much on every order, reduce ad spend. Yes, missed opportunities are a thing. But that is still preferable to getting overwhelmed with orders you can’t fulfill or have to do so at a loss.
The amount you pull back is going to depend on your specific situation. We've had clients pull back by as much as 90%, though at this point most are just pausing spend increases.
If a deal is announced and tariffs are reduced, crank spend back up. I’ve said it already and I’ll say it again (at least once more in this post… maybe twice): this whole situation is volatile and is going to require flexibility and agility by your media buying agency.
Ideally your agency will be cooperative here and act as a true partner rather than focus on short-term profit. We're reducing our rates for clients that pull back on ad spend and for a few that have been with us for a long time, pausing our retainer until there is more clarity.
Sexual wellness company Dame did something incredible last week that addressed the tariff surcharge, brought them closer to their customers, and became a viral marketing messaging opportunity.
Confronted with what to do about tariff costs, Dame founder Alexandra Fine and her team added a line item to every purchase– a Trump Tariff Surcharge. The fee wasn't meant to offset the additional costs, and it definitely didn't, but rather was meant to show consumers that businesses were at the whim of the US government's decisions and that any cost passed on wasn't by choice of the brand.
Customers appreciated the honesty. Alexandra was featured in multiple media outlets. The surcharge became a viral moment, not because of the fee, but because of the clarity and tone behind it.
Most brands won’t go viral with tariff surcharges, but all brands can be transparent and clever in how they message unavoidable cost increases. You don’t need a PR stunt, you just need honesty and a tone that aligns with your brand.
If you’ve got ads that are performing, don’t make changes just to make changes. That concept you weren’t excited about but that keeps delivering strong CAC month after month? Keep it in rotation. You’re not trying to win awards right now, you’re trying to maintain efficient acquisition in a volatile environment. Play the hits.
This isn’t the time to chase novelty for novelty’s sake. What’s working for us right now is creative that is grounded, audience-specific and that embraces clarity over cleverness.
If you’re going to test, do it with intention. Set hypotheses. Build ads for specific personas with specific messaging angles. Know what you’re trying to learn before you publish. That doesn’t mean you can’t move fast, it just means you should be disciplined about why each ad exists in the first place.
We’ve helped brands build quick-fire testing systems that still center strategy with iterative messaging variations and creative brief structures that focus on outcomes instead of aesthetics. It’s possible to produce high volume without sacrificing intent, but you can’t treat every concept like a dart thrown in the dark.
Good creative will need to stretch further right now than it usually does. Make sure the stuff you’re putting money behind is built to hold up.
In an unpredictable environment, stability becomes a competitive advantage.
Meta and Google aren’t just safer bets, they’re known quantities that can be optimized, forecasted, and scaled. That stability is worth more than novelty in times like these.
Now is not the time to spread your budget thin by chasing ad platforms that are unproven for your brand. If you’ve been testing Pinterest, Reddit, and X and you’re not seeing traction, pull back. Don’t let sunk cost fallacy justify continued spend. When budgets tighten and margins shrink, you need to allocate dollars where you’re most confident in the return, even if it’s not exciting.
Stability matters right now. There’s no prize for being early to a channel that can’t scale. Invest where you know it works.
Price increases may be unavoidable, but how you communicate them can either strengthen customer loyalty or erode it.
Dame’s approach is one example, but there are other ways to handle the conversation well. You might emphasize what makes your product worth it despite the cost change, explain the supply chain pressures driving the decision, or offer loyalty perks to show appreciation during the adjustment.
Whatever route you choose, be honest without exploiting the moment.
I’ve seen brands run ads that suggest they’re going out of business, only to reveal that a specific discount is ending. I get the intent, but it feels off to me, especially when some brands really are at risk right now. Using fear or misdirection to drive urgency can damage trust, and once that’s gone, it’s hard to win back.
Not everyone on my team agrees with me here. Some argue that performance is performance and customers know it’s not meant to be taken seriously. No matter how you feel about it, I’d still advise you to think twice before pushing anything that isn’t transparent. If you’re pulling a discount because of tariffs, say that. Just don’t dramatize the stakes if they aren’t real.
There’s always a silver lining, even in otherwise bleak moments like this. If your competitors are pulling back on advertising because they’re short on inventory, or stretched too thin to produce new creative, that opens up space. If your supply chain is stable and your margins can support it, lean in.
We recently spotted that an indirect competitor of one of our clients went dark on Meta. We acted quickly, developing creative tailored to the customer segment that competitor usually serves.s. We made no mention of the brand and ensured the approach was respectful—not aggressive or opportunistic. Still, it smartly capitalized on a moment of reduced competition.
You don’t need to be opportunistic in a cutthroat way, but you should be strategic.
An important note here. Don’t punch down. We’re all in the same ecosystem, and a little empathy goes a long way. This isn’t about going after vulnerable brands or making claims you can’t back up. It’s about being aware, moving quickly, and serving where others can’t, or won’t.
These are the kinds of things that can quietly build long-term advantages while others are stuck reacting.
While we’d all love a more stable trade environment, the reality is that DTC brands need to prepare for continued disruption. Tariffs will shift. Policies will change. Supply chains will stay unpredictable. All we can do is be prepared.
Here’s how some of our clients are preparing.
Brands are building marketing and pricing contingency plans tied to multiple tariff outcomes. If tariffs drop, here’s the media plan. If they spike, here’s how pricing, margin, and messaging shift.
The past few weeks have made one thing very clear: agility beats optimism (that, and don’t try to time the stock market).
In chaotic environments, your existing customers become your foundation. Loyalty strategies, owned channel engagement, and real community-building aren’t just nice-to-haves, they’re a must.
If you’re not investing in the people who already know and love your product, you’re going to feel that gap when acquisition slows.
Consider adjusting your marketing KPIs to account for changing customer acquisition costs. Your agency won’t like hearing this (I was twitching the entire time I typed it), but if you’re reliant on goods from other countries, it’s a conversation worth having– even if it stays hypothetical.
Ultimately, the brands that come out of this stronger won’t necessarily just be the ones with the lowest exposure to tariffs. They’ll be the ones with the most adaptability, the clearest customer communication, and the willingness to make smart, sometimes uncomfortable, decisions.
That’s the throughline we’re seeing right now. The founders and CMOs who are deliberately adjusting ad spend, messaging with transparency, and keeping one eye on the long term while reacting to the short term are the ones weathering this well so far.
I still believe this industry is one of the most resilient out there. DTC operators have made it through things other sectors would’ve (and have) folded under: iOS updates, VC pullbacks, pandemics, and ever-changing algorithm madness.
We’re in this together. And the brands that lean into clarity, community, and adaptability are the ones who will still be standing, and growing, when this set of waves pass.
Every business is unique, so if you’re interested in more tailored thoughts on your brand’s marketing position, just email me at travis@yall.co.
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