resources / blog /
Communicating Tariff-Driven Price Increases: A Guide for Ecommerce Merchants
June 6, 2025
3 min read

Communicating Tariff-Driven Price Increases: A Guide for Ecommerce Merchants

The 2025 U.S.-China tariff reforms have left many US merchants worried about communicating the new prices to their customers. A 125% cost jump isn’t something that’s easy to communicate. Even the elimination of the $800 de minimis exemption- has forced price-rise on everything from electronics to apparel. It’s a tough conversation, but that doesn’t necessarily mean losing customer trust.  

This comprehensive guide provides research-backed proven strategies and to communicate tariff-driven changes with clarity and empathy, while maintaining customer trust and protecting your brand reputation.

Customers value transparency

According to a 2023 study published in the Journal of Consumer Research, customers are significantly more accepting of price increases when they:

  • Understand the underlying causes (86% more accepting when given specific reasons)
  • Perceive the increase as fair and beyond the company's control (73% higher acceptance)
  • Receive advance notice (64% reported higher satisfaction with prior warning)
  • See the company absorbing some of the cost impact (91% indicated greater loyalty when companies demonstrated shared burden)

Dr. Margaret Chen, consumer psychologist at Stanford University, notes: "Consumers generally understand that external factors like tariffs impact businesses. What they resent is feeling blindsided or suspecting that companies are using these events as cover for opportunistic profit-taking."

This is further validated by a 2025 HubSpot survey which shows, 78% of shoppers are more loyal to brands that explain price increases upfront.

Thus merchants who think they don’t necessarily have to announce their price changes, because everyone else will also increase prices, this would be an opportunity missed. Brands are built on proactive communication, and in today’s social media-savvy world transparency is non-negotiable.

Key context to be shared with customers:

  • The de minimis exemption’s end means duties apply to all Chinese imports, even $10 orders.
  • Tariffs on Chinese goods now range from 10% to 145%, depending on the category- thus price changes need to be explained on a product/category basis.
  • Supply chain diversification will take time- most merchants can’t avoid short-term price adjustments. Partnering with a supplier who can stand behind their product quality, in addition to navigating the logistical challenges isn’t something that can be figured in a week or two.

Core principles for effective price increase communication

1. Lead with Empathy, Not Apologies

Avoid defensive language. Acknowledge the impact on customers while emphasizing your commitment to quality.

Example:
“We know price changes are never ideal. Like you, we’re navigating new tariff regulations-but we promise to keep delivering the [product/service] you love.”

2. Transparency Without Overwhelming Detail

Customers appreciate honesty but don't need a graduate-level economics lesson. A 2023 Klaviyo survey found that 76% of consumers prefer "clear and concise explanations" for price changes versus either overly technical details (8%) or vague references (16%).  

3. Break Down the “Why”

Customers are 3x more likely to accept price hikes if they understand the cause. Use simple visuals or bullet points to show how tariffs affect costs.

Sample Breakdown:

  • Product cost: $25
  • Shipping: $5
  • New tariff (10%): $3
  • Total: $33

4. Give advance notice

Try notifying customers a few weeks before the changes take effect. This builds goodwill and lets budget-conscious shoppers stock up.

Harvard Business Review research indicates that providing at least 14-21 days' notice of price changes via customers' preferred communication channels increases acceptance rates by 58% compared to short-notice announcements.

5. Empathy and Partnership Framing
Language that acknowledges the impact on customers while framing the relationship as a partnership significantly improves message reception.  
According to a Forrester study, messaging that used collaborative language ("working together through challenges") resulted in 34% higher customer retention rates following price increases compared to transactional framing.  

6. Value Reinforcement

Research from Wharton School shows that reminding customers of your product's value proposition immediately before or alongside price increase announcements reduces negative responses by up to 40%.

Additionally, equipping your customer support staff with pre-trained responses to common concerns could be of help:  

“Why is my order more expensive now?”  

→ “Due to new tariffs on imports, we’ve adjusted pricing to maintain quality. Here’s how we’re working to reduce costs long-term…”  

7. Offering tiered options for loyal customers

Yes, not everyone will be convinced straight-away. Providing some leeway for special cases can increase conversions like:

  • Special loyalty discounts for long-time customers.
  • Bundle deals (e.g., “Buy 2, save 10%”) or product + service upsell.
  • Payment plans to spread costs over time.
  • Warranty plans that help increase your profit margins.

Ready to use messaging templates for different channels

Here are some effective messaging templates you can use to inform customers about the price changes you are making.

Email Announcement Template

Subject Line: Important Update: Pricing Adjustments Effective [Date]  

Hi [First Name],  
We want to be transparent about changes coming to [Product/Service].  
Due to new U.S. tariffs on imported goods, we’re adjusting prices starting [Date]. While we’ve absorbed costs where possible, [Product] will increase by [X]% to [$$].  

We’re actively diversifying suppliers and negotiating better terms to minimize future impacts. As a thank you for your loyalty, use code [TARIFF10] for 10% off orders placed by [Date].  

Questions? Reply anytime. We’re here to help.  
- [Your Name]  

Website Banner/Announcement Bar

Important: Due to recent tariff increases, prices on select products will adjust on [date]. Orders placed before then will be honored at current rates. Learn more →
 

Product Page Notification

Note: The price of this item will increase by [X%] on [date] due to recent tariff changes. Order now to secure current pricing.
 

Social Media Announcement (Instagram/Facebook)

📢 Important update for our customers: Due to the recent 25% increase in import tariffs affecting our industry, we'll be adjusting prices on [product categories] starting [date].

What we're doing:
• Absorbing [X%] of the tariff impact ourselves
• Offering a 10% discount (code: LOYAL10) until [date]
• Honoring all current pricing for orders placed before [date]
• Working on long-term solutions to stabilize pricing

We value your support and are committed to maintaining the quality you expect while navigating these challenges.

Questions? Drop them below or DM us. We're here to help! ❤️

Order Confirmation Addition (For Orders Prior to Increase)

Thank you for your order! Just a note that you've secured our current pricing before our scheduled adjustment on [date] due to recent tariff increases. We appreciate your business!

Measuring Customer Response

To gauge the effectiveness of your communication strategy, monitoring these key metrics could help:

Pre-Increase Purchase Spike - Effective communication typically creates a 10-30% increase in sales before implementation

Email Engagement Rates - Open/click rates on price change communications (benchmark: 15-25% higher than regular campaign averages)

Customer Service Contacts - Volume and sentiment of inquiries about the price change

Social Media Sentiment - Tone of comments and messages regarding the announcement

Post-Implementation Conversion Rate Changes - Temporary dips of 5-15% are normal before stabilizing

Customer Retention Metrics - Repeat purchase rates in the 60-90 days following implementation

Handling Backlash: Turning Critics into Advocates

Though even with careful communication, some pushback would be inevitable. Here’s how you can respond:

  1. Public Comments:
    “We hear you, [Name]. Tariffs have forced tough decisions, but we’re committed to fairness. DM us-we’d love to discuss solutions.”
  1. Private Complaints:
    Offer a one-time discount or free shipping to retain frustrated customers.
  1. Proactive FAQ Page
    Address concerns preemptively:
  1. “Why did my favorite product get more expensive?”
  1. “Are tariffs permanent?”
  1. “What are you doing to lower prices long-term?”

Common pitfalls to avoid: what not to say

Despite the temptation of instant responses to blunt customer comments, avoiding these common mistakes would help you stand out better:

  1. Blaming External Factors Without Taking Responsibility

Instead of: "Tariffs have forced us to raise prices."

Better: "Despite our efforts to absorb increased costs from tariffs, we need to adjust some prices to maintain our quality standards."

  1. Vague Implementation Timing

Instead of: "Prices will be increasing soon."

Better: "Prices will adjust specifically on [date], giving you three weeks at current rates."

  1. Across-the-Board Increases Without Explanation

Instead of: "All products will increase by 10%."

Better: "Products with imported components will see increases of 5-10%, while our domestically sourced items will remain at current pricing."

  1. Overly Complex Economic Explanations

Instead of: Technical explanations of trade policy and global economics

Better: Simple, direct explanations focusing on specific impacts to your products

  1. No Accompanying Value Messaging

Instead of: Focusing solely on the increase

Better: Balancing necessary increase information with reminders of product value and benefits

Long-term trust-building strategies

  1. Share supplier transition updates:
    “Exciting News: We’ve partnered with factories in Mexico to reduce tariff impacts by 2026!”
  1. Highlight quality improvements:
    Tie price hikes to tangible upgrades (e.g., “New tariff-compliant materials are 2x more durable”).
  1. Bundle offerings:
    Helping customers get some additional freebies or new integrations on top of existing products could help increase conversion rates. Messaging that focusses on higher value output helps.

Your 30-Day Action Plan

  1. Week 1: Draft customer comms using the templates above.
  1. Week 2: Train support teams on tariff talking points.
  1. Week 3: Launch email/SMS campaign + website banners.
  1. Week 4: Monitor feedback and adjust messaging.

Final Takeaway: Tariffs are a reality, but your response can deepen customer relationships. By communicating early, honestly, and empathetically, you’ll position your brand as trustworthy in uncertain times.

Lastly, to showcase that you are a responsible brand which stands behind their product’s high quality, consider offering product protection plans. To discover the key business advantages- talk to us.

🔗 Link copied to clipboard!