Banks have a chance to build trust with US consumers and businesses facing tariff-related expenses

The trend: President-elect Donald Trump has proposed tariffs on goods imported from China, Canada, and Mexico—prompting many customers of financial institutions (FIs) to adjust their spending and saving habits.

What consumers are thinking: Over two-thirds of US consumers believe prices will rise if Trump places tariffs, per a recent Harris Poll. These concerns cut across party lines—79% of Democrats and 59% of Republicans expect price hikes.

These fears are driving consumers’ holiday spending decisions:

• Fewer US consumers shopped on Black Friday this year, despite record spending, per PYMNTS—indicating higher spending per shopper.
• Big-ticket spending also saw an uptick, likely fueled by some shoppers splurging ahead of potential tariffs.

Commercial banking shifts ahead: Corporations in the US and abroad are trying to plan around the uncertainty.

Bank of America’s Global Commercial Banking Head, Wendy Stewart, told Bloomberg that tariffs are top-of-mind for many of the bank’s 15,000 middle-market corporate clients.

• Stewart said the bank is fielding many questions about what tariffs mean for its clients, and it’s focused on turning the uncertainty into investment opportunities. 
• For instance, she described foreign clients exploring diversification into the US to prepare for what’s ahead.

Many small businesses are scrambling to prepare for supply-chain issues, per NBC News.

• For example, a children’s product manufacturer is stockpiling $200,000 worth of inventory from China to avoid subsequent cost increases.
• Some are cutting expenses by negotiating the price of supplies, or are considering passing costs to customers by adding a “tariff surcharge.”

What this means for banks: As consumers and businesses look to manage tariff risks, FIs can market their most relevant products to current and prospective customers. For consumers, those could include:

• Budgeting tools
• Cost-cutting advice or services, such as easy visibility into subscriptions or recurring costs
• Products that help customers save faster
• Advice on how to navigate the upcoming changes

And for businesses, that could include products and services like:

• Tools that optimize cash flow
• Flexible lines of credit

Our marketing take: The uncertainty gives FIs an opportunity to become a trusted voice on social media by offering thoughtful advice. For example, the Bank of England uses TikTok to discuss financial topics such as interest rates. This approach can help FIs build brand awareness and convert viewers by connecting their advice to relevant proprietary tools.

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