The Impact of Tariffs on Exhibitors and How to Plan Ahead

News about tariffs are making waves throughout the US and internationally. In the exhibit and trade show industry, the impact is already being felt across budgets, supply chains, and sourcing practices. For exhibitors and event planners, the need to plan ahead has never been more critical. At The Exhibitor Advocate, we are here to help you understand these challenges and equip you with actionable strategies to adapt and thrive.

What Are Tariffs, and Why Do They Matter?

Simply put, a tariff is a tax on imported goods and services. Historically, governments imposed tariffs to protect domestic industries and as revenue-generating policies. While tariffs were significantly reduced after World War II through initiatives like the General Agreement on Tariffs and Trade (GATT), recent years have seen a resurgence of tariffs to support domestic industries and regulate international trade.

What does this mean for exhibitors? Tariffs have already generated over $300 billion in revenue for the U.S. government and are unlikely to disappear any time soon. Exhibitors must proactively address these tax-related cost increases to safeguard budgets and ensure event success.

The Challenges Ahead

For exhibitors, tariffs can directly impact shipping, customs fees, and import costs, which in turn affect exhibit program budgets. Whether you’re sourcing materials internationally or importing booth components, these costs can quickly escalate. Compounding the issue, navigating customs and tariff regulations is time-consuming, often taking months to resolve shipment-related issues.

If you think tariffs won’t affect your events, think again. The U.S. Trade Representative (USTR) continues to impose tariffs on goods from numerous countries. Many of these tariffs are layered on top of existing ones, with no exemptions or exclusions in sight. This is especially concerning for goods imported under Section 232 and Section 301 tariffs.

Key considerations include:

• Manufacturing limitations: Switching production to other countries—or even domestically—isn’t as simple as it sounds. Costs associated with remanufacturing tooling, molds, or safety certifications can be prohibitive.

• Workforce challenges: Domestic manufacturing faces hurdles like a lack of available skilled labor and declining union memberships, further complicating the situation.

• Anti-Dumping Duties (ADD): Materials like aluminum are subject to ADD fees ranging from 25% to 125%, inflating costs significantly. For accurate tariff assessments, ensure your documentation specifies that materials are for exhibit fixtures or event components.

Recommended Solutions from The Exhibitor Advocate

Navigating the complexities of tariffs requires a thoughtful approach. By acting early and strategically, exhibitors can mitigate rising costs. Here’s how:

1. Revisit Your Exhibit Ownership Model
   Consider shifting from outright purchases to leasing exhibit components. Working with an exhibit house that sends products under a temporary import bond can reduce your tariff exposure. Once the components are returned to their home base following the event, tariffs may not apply. This flexible approach can save both time and money, allowing your brand to focus on creating outstanding customer experiences.
2. Partner with Local Suppliers
   Leverage the expertise of local service providers to craft unique experiences for your events. Local businesses understand their communities, offering culturally relevant ideas for dining, entertainment, and specialized event activations. Not only does this approach reduce import costs, but it also strengthens relationships with local suppliers, fostering a sense of community in the industry.
   
   The Convention and Visitors Bureau of your destination city can put you in touch with local bands, vendors or artists to lend a special experience to your event.
3. Optimize Your Giveaway Strategy
   Event attendees do not need tote bags, backpacks, or other giveaways. Many of these items are produced and sourced in Asia and disposed of before the attendee leaves the venue.
   
   Instead, consider digital giveaways, such as gift cards or curated content like checklists and e-guides, which simultaneously reduce costs and enhance lead generation by capturing attendees’ email addresses.
   
   For physical mementos, partner with local businesses to provide unique, sustainable items. Branded cookies or wrapped candy in a booth always draws attention. A large water cooler at the edge of the booth inviting attendees to “have a drink on us” using a branded cup is a nice way of integrating into the larger experience of the show.
4. Plan for the Long Term
   With tariffs expected to remain in place or increase, exhibitors must lengthen their planning timelines. Give yourself at least an additional three months to navigate customs processes, sourcing options, and exhibit features affected by additional costs. Early planning allows you to pivot strategies as needed, avoiding last-minute surprises.
5. Leverage Community Expertise
   At The Exhibitor Advocate, we believe that exhibitors are stronger together. By joining our community, you gain access to resources, data-driven guidance, and best practices that can help you prepare for the challenges ahead. Our advocacy efforts and collaborative relationships with stakeholders across the industry ensure your voice is heard, and your concerns are addressed.

Sustainability and the Bigger Picture

Sustainability is becoming a core value for many brands, especially as younger audiences place greater emphasis on environmentally friendly practices. By integrating sustainable practices into your event strategy, you not only reduce costs but also align with broader market expectations. Simple swaps like leveraging local materials, reducing wasteful giveaways, and adopting digital-first approaches go a long way in building a positive brand image.

Start Your To-Do List Today

Preparation is the key to navigating rising tariffs and shifting industry challenges. Use this checklist to get started:

1. Understand the impact tariffs have on your business model. Familiarize yourself with cost breakdowns and anticipate potential increases.
2. Revisit your exhibit ownership model. Explore leasing options to stay flexible and reduce overhead costs.
3. Collaborate with local suppliers. Support small businesses while creating unique and memorable event experiences.
4. Upgrade your giveaway strategy. Opt for sustainable or digital options to reduce shipping and storage costs.
5. Design for the future. Start planning today for the rising costs of food, beverage, and services in 2025 and beyond.

Build a Strategic Path Forward

The impacts of tariffs don’t have to stop you in your tracks. By staying informed and implementing solutions tailored to your exhibit program, you can protect your budget and deliver exceptional event experiences. And remember—we’re here to help.

At The Exhibitor Advocate, we’re dedicated to empowering exhibitors like you through advocacy, education, and collaboration. Together, we can address these challenges and ensure a thriving, sustainable trade show community.

Join our community today and access the resources you need to succeed. 

Special thanks to our contributors:  Victor Torregroza, Susanne Skinner, and Kevin Carty