Trump Tariffs Create Customer Experience Opportunities for Business

Forbes

4 days ago

With President Trump's tariff policies evolving by the day, economic uncertainty is persisting among the U.S. buying public. Brand loyalty is at risk.
During these unsettled times, businesses might be tempted to focus less on customer experience in the quest to keep customers spending at all.
Don't. In fact, use it as an opportunity to emphasize experience even more – to keep your existing customers, gain new ones, and reinforce loyalty to your brand.
Because loyalty goes both ways.
As we learned during the COVID-19 pandemic, the human condition desires the knowledge that someone will have our back, especially during difficult times. Back then, that meant brands that were there for us when we did business with them.
Today, retailers should continue to reward their loyal customers – even if current conditions leave them struggling or spending less – by giving them the best experience possible.
It's like how you pay your insurance premium every month – and hope that when you have a claim, they cover it. Sometimes that loyalty is rewarded; all too often, it is not.
Reward it – with a mixture of COVID-style empathy, transparency, and a re-dedication to the core principles of serving the customer. Customers will reward you back with loyalty of their own, which will then extend beyond troubled times.
As I have often written and said in keynote presentations, competing on price is a losing game because the competitor down the street will match you dollar for dollar. Competing on product is increasingly difficult – if Uber can be copied as quickly as Lyft emerged, anything can be duplicated.
So what's left as a way of standing out? Customer experience. Especially in moments like today, when your customers may not be experiencing their best of times.
Many of those customers are growing anxious, recent data shows.
According to a Gartner survey of 212 U.S. consumers conducted in March, 42 percent said they had decided to wait to make a major purchase. That's up from 28 percent in 2024.
By third quarter, Gartner is predicting, 60 percent of consumers will have elected to delay a major purchase, with 60 percent buying on secondhand and peer-to-peer marketplaces by the end of the year.
'The current wave of economic uncertainty is reshaping consumer behavior in profound ways,' Kate Muhl, VP analyst in the Gartner marketing practice, said when the report was released. 'There is a clear shift towards more deliberate purchasing decisions and budget-conscious shopping strategies, as individuals prioritize financial stability over immediate gratification.'
In response to economic uncertainty, telecommunications giant Verizon has taken a smart, nuanced approach: Re-focusing on customer experience while doing what needs to be done for the bottom line.
Executives acknowledged during a 2025 first quarter earnings call in April that the Trump administration's tariffs could lead to price increases. If tariffs increase the cost of manufacturing or importing phones, CEO Hans Vestberg explained, Verizon would be unable to cover the majority of the costs.
"That's just not going to be possible," he said.
But executives also said they are determined to offer more promotions and deals to customers, continuing a customer experience focus that began in 2023. It has included revamping the loyalty program to offer more personalized discounts to customers, along with exclusive access to events such as concerts and movie premieres.
Verizon is also planning to launch customer experience initiatives driven by artificial intelligence later this year, executives said.
'We are doubling down on our customer-first strategies with an increased focus on customer retention,' Sowmyanarayan Sampath, CEO of Verizon Consumer Group, said on the call.
While many companies ranging from Walmart to Nike have also announced that they will pass along tariff costs to customers, others have reacted in different ways.
Dow, for example, is delaying construction of a new plant, while other firms have paused travel, slowed hiring, or cut other costs. While these companies are understandably prioritizing their business stability, the initial result means a better experience for customers if only because they won't pay more. But saving elsewhere in the business may also allow those companies to continue to invest in customer experience.
Here are a few things corporate America should be doing to maintain and enhance customer experience:
In an era where tariffs and economic anxiety are reshaping consumer behavior, businesses face a critical choice: cut corners on customer experience to preserve margins, or double down on the very thing that differentiates them from competitors.
The companies that will emerge stronger from this period of uncertainty are those that recognize customer experience as both a competitive advantage and a loyalty insurance policy. By showing empathy, maintaining transparency, and remembering the lessons learned during the pandemic, businesses can transform economic challenges into opportunities to deepen customer relationships.
When the economic storm eventually passes, the brands that stood by their customers during times of uncertainty will find those customers standing by them, creating a foundation for sustained growth that no competitor can easily replicate. After all, loyalty goes both ways.