More brands turn to ‘tariff sales’ to drive demand before prices increase
As President Donald Trump’s far-reaching tariffs threaten to raise the cost of imported goods, some brands are taking a more promotional approach: launching “tariff sales” to encourage shoppers to buy now before prices go up.
While some brands are tacking on “tariff surcharges” at checkout, as Modern Retail previously reported, others are appealing to price-conscious shoppers with discounts. One early adopter of this strategy is Saatva, a mattress brand, which recently ran a 15% off promotion as part of a “Beat the Tariffs” sale. Saatva told Modern Retail it launched the promotion to appeal to cost-sensitive customers and signal transparency in an increasingly unpredictable trade environment.
“The messaging was timed to something that customers are thinking about,” Shari Ajayi, director of public relations at Saatva, said in an interview. “We don’t know how prices will change. There could be a tariff tomorrow that completely changes some part of the supply chain.”
The rise of tariff sales comes as the average effective tariff rate on U.S. imports climbs to the highest level in more than a century. The latest tariffs include a 10% universal tax on a massive swath of imports, as well as a staggering 145% duty on most goods from China, the second largest source of U.S. imports. In response, consumers are snapping up goods before duties raise the cost of everything from grocery staples to appliances — and brands are rolling out tariff-themed promotions to spur demand and move inventory while they still can.
Cost pressures
Though Saatva mattresses are made in the U.S., Ajayi said some components — such as latex harvested from rubber trees and fabrics used in upholstered frames — are sourced internationally, including Canada, making the company vulnerable to tariff shifts. The three-day sale, which ran from April 4 to April 7, offered 15% off orders of $1,000 or more.
Ajayi declined to share specific metrics around sales performance, but she said Saatva viewed the sale as “a positive value-adding service” for customers during a time of economic certainty. She added that Saatva wanted to ensure a mattress didn’t feel like “an impossible purchase” or “unattainable” because of cost increases related to tariffs.
“We didn’t increase prices. We gave a discount,” Ajayi said. “It was kind of a gesture because we know that in-market shoppers are facing hardships in other areas of life.”
Spice brand Burlap & Barrel similarly ran a “tariff sale” to manage incoming cost pressures. The company imports ingredients like cinnamon and garlic from over 30 countries, exposing it to a wide swath of global tariffs. Instead of raising prices, Burlap & Barrel opted to discount products. The sale “was one of our biggest days ever in nine years,” co-founder and co-CEO Ethan Frisch previously told Modern Retail. The sale helped increase cash flow while the brand pauses new product launches until the landscape stabilizes.
Meanwhile, Miracle Made ran what it called a “Tariff Liquidation Sale” this past weekend, advertising up to 46% off its temperature-regulating bedding, plus an additional 20% discount with a code. “It’s our way of giving you a chance to beat the potential price increases that are coming,” the company wrote in an email to customers. “We are not sure how long this will last, so get it while you can.”
Even brands that aren’t officially hosting tariff sales are still encouraging shoppers to buy goods while they can before costs rise. Luggage brand Béis, for instance, told customers in an email, “If you’ve been eyeing something now might be a good time to make your move, as current pricing remains in effect — for now.”
Short-term fix
Retail experts say the tactic is a creative way to respond to rising uncertainty, but it’s not without risk.
“It’s a short-term fix for driving sales by leveraging the fact that consumers are worried about this,” said Melissa Minkow, director of retail strategy at CI&T. “At the same time, it does ultimately benefit both retailers and consumers if the consumers were planning on spending on this item.”
There could be long-term brand implications if promotions like tariff sales become too frequent. “There’s potential brand dilution that can definitely occur,” Minkow said. “If you’re able to pull the trigger and create these kinds of immediate discounts, it may start to drift your brand into more of a discounter space.”
That’s a concern brands like Saatva are weighing carefully. Ajayi said that the company doesn’t plan to make tariff sales a recurring tactic and that future promotions will align with more traditional holiday calendars. “We did something out of the norm,” she said. “We know that Americans are going to see shifts in a direction that they’re not wanting to see prices go, so we wanted to make sure that we were doing something that is helping customers.”
Minkow predicts that more brands may adopt tariff sales in the coming weeks. “I think we’ll see it until it no longer makes sense,” she said. “But what happens if the tariffs get walked back? Do consumers stop spending because they overbought during this cautionary period? Or do they just keep buying because prices didn’t go up as expected? It’s hard to say.”