What Is the Effect of Tariffs on Couponing?

IMAGINE you are a marketing director for a consumer products company in 2025.

The coupon industry has always been wrought with unusual “issues” or “rules” which result in uncertainty and 2025 is no different. Currently, one of the subjects resulting in this uncertainty is proposed tariffs and what effect they will have on the various segments of our industry.

Initially, your first step should be to analyze what is changing daily and if you can control any portion of the environment.  Some questions to ask yourself include:

• Are any of the raw products or ingredients that make up my product affected by the tariffs?
• Does my final product require major importing, and how will the tariffs affect the raw cost to produce that final product?  Whether it be fruits, vegetables, coffee or seasonings, the fact that we are going through weeks/months of unstable tariffs has this affected how I market my product.  
• What will the margins of my product be? Will unstable tariffs continue to make those numbers move up or down? Is there a chance that those tariffs will affect my availability to acquire those ingredients or finished products?
• Do I have products which will be affected by ICE raids on my pickers or processing plants?
• Will I even have products to fill the supply pipeline?

Now to address the marketing of my product:

• How are those items affecting my ability to market my product?  Can I offer discounts to keep my loyal customers?
• Can I afford to offer discount coupons when I’m not even sure if I’m going to have the volume of product to sell?  
• Can I work out deals with retailers with a major question of product availability or product costs?

This initiative is still in its infancy. However, everyone in the coupon industry needs to be aware of the far-reaching effects and make sure they are aware of the implications as well as their state legislatures are aware of the impact it will have on their consumer constituency.

Sandi Kleemann is President/CEO of Redemption Processing Representatives.