Insights

How EU brands can stay preferred in the U.S. even when tariffs bite

Andrew Dimitriou
Andrew Dimitriou
Chief Client & Growth Officer
Length 5 min read
Date April 25, 2025
How EU brands can stay preferred in the U.S. even when tariffs bite

It’s no longer business as usual for EU brands in the U.S.

New tariffs and trade tensions have upended the old equations, squeezing margins, disrupting logistics, and pushing imported products to the wrong side of the price comparison.

But this isn’t a moment to pull back. It’s a moment to pivot—to strategically, deliberately build brand preference that outlasts volatility.

Price pressures. Perception shifts.

U.S. consumers are under strain. 45% say their personal finances are getting worse, and 41% report feeling the impact of tariffs in their everyday spending. In this climate, value is being redefined, not as the lowest price, but as the lowest risk.

That creates space for brands that can offer reassurance: in quality, ethics, innovation, or customer experience. Nearly 70% of Americans say free trade benefits them personally, and over 80% support it in principle. They still want trusted global brands. But now they expect them to earn it.

Mammut "Not a streetwear" brand campaign

When you can’t win on cost, win on meaning

U.S. consumers will pay more if they believe they’re getting more, especially when it comes with integrity attached. Brands such as Patagonia and Mammut, which lead in craftsmanship, sustainability, service, or innovation, are well-placed to hold ground, even when tariffs shift the math.

We’re working with EU clients to surface the strengths that can’t be replicated cheaply: distinctive design, ethical sourcing, category expertise. And to make that value visible through messaging that’s clear, consistent, and confident.

That includes pricing. The most resilient brands are those that explain cost shifts transparently and use them to underline what makes them different. Right now, clarity is a trust move.

Engagement without the transaction

Even when wallets tighten, attention still matters. Just because a consumer can’t buy now doesn’t mean they’re lost forever. Staying relevant between purchases is often what secures the next one.

This will be especially true for luxury brands. For example, French luxury goods conglomerate LVMH has already made it clear that price changes are a “lever we’re going to consider” for some of its business lines that tariffs may impact. Some analysts note that affluent consumers are not vanishing, but rather waiting for clarity and pausing some of their spending.

“This isn’t a demand crash, but a psychological pause. Make it feel worth waiting for,” said Chandler Mount of the Affluent Consumer Research Company. If you’re off the shelf for now, be unforgettable off the shelf too.

For some brands, this could also mean offering high-value content, such as tutorials, behind-the-scenes storytelling, or transparency on sustainability, that keeps your brand top of mind. It’s also about inviting participation: polls, social prompts, or community-building campaigns that let customers shape the narrative or feel closer to your brand.

“Sometimes the most valuable customers aren’t the ones buying today—they’re the ones bringing others in tomorrow.”

Rethinking loyalty: Reward more than just the sale

Traditional loyalty programs reward spending. But modern loyalty is broader—it’s about recognising all the ways customers show up. Sharing a product story, reviewing an item, attending an event, or referring a friend are all moments worth rewarding.

Even going back to last summer, sportswear brand Under Armour said it was seeing increased engagement with its loyalty programs as consumers were dealing with financial concerns. “Our loyalty program is … giving us an added boost in realizing improved long-term growth, profitability, and higher brand engagement,” said Under Armour President and CEO Kevin Plank.

Progressive CRM strategies are shifting focus from recency/frequency/monetary metrics to engagement intensity. We’re working with clients to design programs that credit interaction, advocacy, and feedback, especially during price-sensitive periods when purchases might pause but interest hasn’t.

Sometimes the most valuable customers aren’t the ones buying today—they’re the ones bringing others in tomorrow.

Build brand, even in a buyer’s market

When everyone’s shouting “value,” it’s tempting to go quiet. But in a noisy market, silence doesn’t signify strength—it risks invisibility.

Last month, the CEO of Danish toy company Lego Group said tariff threats are not what keep him up at night, and the brand is more focused on gaining market share and increasing its loyal followers. 

This is the time to sharpen your brand voice, not soften it. To invest in creative that reinforces what you stand for, and channels that let you show up where it matters. Share of voice is still a leading indicator of share of market, especially when competitors cut back.

We’re helping clients structure their operations to better serve U.S. customers without compromising brand DNA. Local proximity doesn’t have to mean local production, but it does demand local understanding.

If the road gets rocky, be the brand that still shows up. That consistency, more than any price point, earns loyalty.

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A moment to rebuild, not retreat

This isn’t the first time EU brands have faced headwinds in the U.S. But the speed and scale of change have shifted. Tariffs, pricing swings, and consumer anxiety are now part of the operating context, not temporary turbulence.

The winners will be those who adjust quickly and communicate clearly. Those who move from static planning to responsive orchestration. And those who treat proximity not as a postcode, but as a principle.

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