Transparency is the New Loyalty: Why Brands Should Treat Tariffs Like Sales Tax

Consumers are waking up to a new economic reality: things cost more. From hot sake to tinted moisturizer to vehicles, the everyday evidence is piling up. For brand leaders, especially in retail, this isn’t just about inflation. It’s about trust — and how it's built or broken in the age of tariff trickle-down.

The assumption that businesses will simply absorb increased costs and maintain price stability is, frankly, wishful thinking. The truth is most companies will pass those costs on to the consumer. And when they do, they’ll face a critical choice — be transparent or be targeted?

While tariff policy may seem like a macroeconomic abstraction, its impact on pricing is concrete. Brands that lack a proactive communication strategy risk being perceived as opportunistic, especially if the government continues to assert that tariffs won’t reach consumers’ wallets. Once the public believes companies are using tariffs as an excuse to increase prices and boost margins, trust and long-term loyalty erodes with it.

So here’s my thesis: brands need to treat tariff disclosures with the same clarity we apply to sales tax.

That doesn’t mean a political stance or a dry economics lecture at checkout. It means giving consumers what they increasingly expect — an intuitive breakdown of why things cost what they do. Just as consumers are familiar with line items like shipping, service fees, and taxes, they can get used to seeing a “tariff fees” with the same neutrality. It’s not a justification; it’s just the truth.

Now, here’s where creative marketers and agencies can truly shine.

Remember when Apple rolled out App Tracking Transparency? With a single OS update, millions of consumers were suddenly given the ability to opt out of being tracked. Brands and app developers had no choice but to get smart — and fast — about communicating why tracking mattered. The best campaigns didn’t just beg users to click “Allow.” They told a story. They explained the value exchange, gave users control, and did it with brand voice intact. That wave of transparency didn’t weaken strong brands; it strengthened them.

Tariffs may feel different, but the messaging opportunity is the same.

Smart marketers will recognize that the challenge isn’t just explaining a price hike; it’s reinforcing the brand-customer relationship during a moment of tension. It’s giving consumers a reason to trust, not just transact. That might mean creative breakdowns of how prices are built. It might mean interactive UX that lets consumers choose subscription tiers with or without tariff-affected SKUs. It might mean rethinking how value is conveyed altogether.

Because here’s the truth: consumers are already filtering for what they’re willing to pay more for. Premium categories and beloved brands may retain loyalty through value perception. Others won’t be so lucky. The difference won’t just be price — it will be perceived honesty.

That’s why brands need to get ahead of this now. Introduce tariff disclosures as a norm, not a defensive maneuver. Present them with the same calm clarity as you would any fee. “Base price: $50. Sales tax: $4. Tariff impact: $3.” No drama. Just facts.

Some legacy brands may hesitate, worried that revealing this level of detail breaks a long-held pricing taboo. However, in an era of instant price comparison, Reddit forums dissecting markups, and TikToks exposing product margins, opacity is a bigger risk than honesty. The customer already knows something has changed. The question is will you explain it before someone else does.

Retailers and direct-to-consumer brands are uniquely positioned to lead the charge. Their digital platforms give them more flexibility to test, communicate and iterate. And their customer bases — already tuned into price changes and value cues — are hungry for brands that don’t treat them like they’re in the dark.

Transparency isn’t just a defensive play. It’s a loyalty strategy. It’s a creative brief. It’s an invitation to do what marketing does best: make complex things understandable and human.

Therefore, don’t wait for tariff blowback to force a response. Build the narrative now. Engage your creative teams. Equip your agencies. Empower your brand to be the one that consumers thank — not just for what you sell, but for how honestly you sell it.

In a time of cost scrutiny and consumer skepticism, transparency is the most undervalued currency we have. Let’s not waste it.

Dustin Engel is the CEO and founder of Elegant Disruption, a provider of fractional and flexible strategy and communications consulting for marketing services and technology leaders.