Following our earlier analysis of the impacts of tariffs on the automotive, clothing retail, and furniture store sectors in local advertising, now, we are focusing on real estate, restaurants, and home centers.
This analysis is crucial as businesses face a complex landscape of international trade fees. These include up to 145% tariffs on imports from China, a 20% tariff on goods from the European Union, and a 24% tariff on products from Japan, along with a baseline 10% fee on all imports into the U.S. Tariffs are now affecting the whole supply chain. Recent reports indicate that China’s factory activity fell to a near two-year low in April as the impact of these trade tariffs become more pronounced.
As production costs for physical advertising and digital elements continue to rise, local business advertising budgets are under increasing pressure. This situation creates a perfect storm that necessitates more efficient and targeted approaches.
In the real estate sector, rising costs of imported materials will likely drive up prices for new homes, creating a complex marketing challenge. Developers will most likely focus their messaging on long-term investment value, energy efficiency, and, when possible, domestic sourcing.
The National Restaurant Association projects a $12 billion impact on the industry as restaurants encounter unprecedented supply chain challenges. For instance, Chipotle’s dependence on Mexican avocados—accounting for 50% of its supply—highlights this vulnerability.
Home improvement retailers are likely to see price increases of over 10% in finishes and fixtures. Major appliance manufacturers, such as LG and Samsung, are particularly impacted due to their Asian manufacturing bases.
The report, Understanding Tariff Impact on Local Advertising: Business Vertical Analysis, Part 2, can be found in the Guide and Insights section of BIA ADVantage. BIA clients can log in here. If you’re interested in this analysis, please email us at sales@bia.com to discuss it further.
