The Impact of Tariffs on the Retail Customer Experience

he inauguration of a new U.S. president in January 2025 not only changed the administration but also initiated a complete shift in managing the U.S. economy. A key focus is the rapid implementation of tariffs affecting the U.S. and its trading partners. Tariffs act as a tax on businesses importing goods, since companies cannot retrieve their products at ports without paying these tariffs. Ultimately, this additional cost is absorbed by either the ordering business or the end consumer, depending on whether the business chooses to pass on the expense to them.

Across various vertical markets, numerous uncertainties are of concern:
• How are industries dealing with almost daily shifting of policies that impact all areas of business, from forecasting, budgeting, marketing, buying and selling, to supply chains?
• How can they plan without knowing if a trade war will start and escalate at any moment?
• How does this disruption affect customers and customer experience (CX)?

Frost & Sullivan annually surveys thousands of businesses as to their wants, needs, and investment priorities within the contact center market. This research involves segmenting data by vertical market and providing in-depth growth insights into CX across key vertical markets. For this insight, Frost & Sullivan discusses the retail market, as it provides one of the most compelling and relatable case studies for the effects that tariffs have had on CX. It discusses the impact tariffs are having on businesses and what businesses and suppliers should be doing now to mitigate them.