Tariff pressures may offer a rare breakout moment for retailers to better connect with consumers

As the U.S. rolls out steep new tariffs—with China’s tariffs now hitting as high as 145%—companies with deep manufacturing roots in China are scrambling to assess the damage and allay consumer fears of more pricing pressure. 

According to Tim Zawislack—digital and e-commerce consultant at RoC Skincare, former Chief Digital Officer at Conair, and former head of e-commerce and digital marketing with Delta Galil Industries—anyone who thinks this is a cost that can simply be passed down the supply chain is in for a rude awakening.

Price conscious: "If you're a large brand manufacturing in China—or in any of these newly high-tariff zones—and you're selling into Walmart, Target, Amazon, or Costco, and you think you're just going to pass that increase along to those retailers, you need to think again," Zawislack says. "These companies, especially Walmart and Costco, have built their businesses around low prices. It's in their DNA: everyday low price. That's who they are."

Scrambling to adjust: Zawislack says many brands that have major exposure to manufacturing in China are now panicking. "A lot of brands with significant exposure to China woke up to a massive tariff—basically overnight. And now they're scrambling to figure out what to do next," he says. "But shifting out of China isn't something you decide on tomorrow. This is a multi-year, cross-functional, highly orchestrated project."

Not a death sentence: That said, he doesn't believe the new tariffs will be fatal for most. Particularly for direct-to-consumer brands, which often operate with wider profit margins and have tighter connections with customers, there may be more room to adapt. "You might have a DTC brand operating on a 60% margin," he says. "If tariffs increase your cost of goods sold by 10%, now you're working with a 50% margin. It's not ideal, but it's survivable. Maybe you cut back somewhere else. Maybe the founder takes a smaller paycheck. It's not great, but it’s not the end of the business either."

A small window: Zawislack sees this turbulent period not just as a challenge, but as a rare opportunity—especially for legacy brands with strong heritage and deep roots in the U.S. or Europe. "There's a moment here—albeit a small one—for legacy brands to claw back some market share," he says. "Digital marketing costs like CPCs and CPMs: they're not cheap, but they've gotten a little less expensive in recent weeks. If you have a sharp marketing and digital team, now's the time to go tell your story."

He believes these brands have a narrative worth retelling: "Remind people you invented the category 40 years ago. That your product lasts longer. That you buy it once—not ten times like the cheaper knockoffs that break. There's value in that, and right now is the time to say it, because it's a unique door that won’t be open for long."

China's adaptability: "It's unclear how long current tariff levels will remain in place," he says. "They could be reduced or reversed entirely. And even if they persist, Chinese manufacturers—who are highly skilled, intelligent, and adaptable—will inevitably develop alternative solutions. Their competitive edge may be diminished temporarily, but they are unlikely to remain at a disadvantage for long."

Zawislack believes that while the disruption may challenge many brands in the near term, it is also a moment that rewards strategic thinking. "This is not the end for Chinese-based sellers," he says. "They will encounter short-term difficulties, but over the mid- to long-term, they will find new ways to compete. They are extremely resourceful and resilient."