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How are Tariffs Affecting Displays?

  • criley574
  • Apr 10
  • 5 min read

Updated: 3 days ago

Inflation is squeezing margins and global supply chains remain unpredictable, creating a visually striking in-store display on a tight budget is more challenging — and more critical — than ever. And, let’s be honest: we’ve all seen those jaw-dropping headlines and like many, our industries will and are being impacted. So the questions becomes...


How do we make decisions based on a unpredictable future?


In this post, we share how to create an amazing store display in 2025 without blowing your budget — and without getting burned by trade surprises. Starting with clearly defined goals, planning for inflation, and staying flexible with your options.


1. Set Clear Goals from the Start


A successful display starts with knowing exactly what you want it to achieve. Whether you're promoting a product launch, supporting seasonal marketing, or increasing basket size through impulse buys, defining your goal early keeps your project focused and cost-efficient.


Ask key questions:

  • What is the main action you want shoppers to take?

  • What KPIs are you using to measure success — sales lift, dwell time, social sharing?

  • Will this be a short-term promotion or a long-term fixture?


Having clear performance metrics helps justify your budget, align cross-functional teams, and avoid costly mid-project changes.


Industry Insight: According to the Shop! Association’s 2024 In-Store Engagement Report, displays designed with a single, focused shopper goal in mind saw 35% higher effectiveness scores than those trying to achieve multiple objectives at once.


Check out our guide on how to write a Great Retail Display Design Brief


2. Make Strategic Material Selections


Choosing the right material means knowing your options and being flexible.


Your material selection is one of the biggest drivers of display cost — and one of the biggest risk areas when it comes to tariff exposure. The key is balancing form, function, and sourcing stability.


Prices are going up

There's no doubt that we'll be seeing higher cost. Here's a breakdown of the expected increases, and the anticipated impact of domestic (U.S.) manufacturing costs:​


Steel and Aluminum

Steel prices rose by approximately 5% and aluminum by about 10% in the month following the tariff implementations (Reuters). Which are expected to raise production expenses for industries relying on these metals


Paper and Cardboard

It's difficult to know the exact increase, but the paper packaging sector is experiencing price hikes due to tariffs and other factors. (​Fastmarkets) The US does have domestic paper and cardboard production facilities, however tariffs will contribute to increased operational expenses and supply chain disruptions in the printing and packaging industries. (Printing.com)


Plastics

Same as paper and cardboard, tariffs have led to increased costs in the plastics recycling industry, though exact percentages are not specified. (​ESG News | ESG Dive) Along with China and Germany, the US is also a major producer of plastic materials. Although this fact, the US still relies on imports for certain types and tariffs are causing higher costs for raw plastic materials and equipment, affecting manufacturers' expenses. 


Electronics

China, South Korea, and Japan are the leading producers of electronic components. And with the U.S. reliance on imported parts, tariffs are expected to result in a significant increase.


Wood

Lumber prices have risen by approximately 20% since tariff discussions began. (​ResourceWise)


Textiles

The US relies heavily on textile production in China, India and Bangladesh. And due to the tariffs, textiles duty rates have surged between 40% and 50%, resulting in margin compression and potential cost increases of 15% or more for certain products.( ​Vogue Business)


These price increases will undoubtedly affect your final material choice. So, focus on the primary goal and purpose of your in-store display and be flexible with the final selection to reduce the overall cost of your retail display program.


Embrace Material Hybrids

Combining premium and budget-friendly materials can help you achieve high visual impact without high cost. For example:

  • Use a gloss acrylic header over a corrugate base

  • Mix wood laminate panels with metal peg hooks

  • Apply high-end finishes (like vinyl wraps or faux textures) to low-cost substrates


Be Aware of Tariff Hotspots

As of early 2025, tariffs on Chinese imports remain in place under Section 301. This affects a wide range of materials commonly used in POP displays, including:

  • Steel and aluminum extrusions

  • Injection-molded plastics

  • LED lighting components

  • Vinyl graphics and signage substrates


While there’s talk of trade normalization with some countries, the U.S. Trade Representative (USTR) confirmed in January 2025 that many of the Section 301 tariffs will remain for the foreseeable future, particularly those affecting industrial materials from China.

(Source: USTR Report, Jan 2025: https://ustr.gov)


Stay Flexible

Sometimes changing the country of origin for a single component can save thousands. Consider sourcing from USMCA member countries (Canada and Mexico), or ASEAN trade partners like Vietnam and Thailand, which currently face fewer import restrictions.


Follow us to keep in the loop of how tariff changes will affect the point of purchase display industry. And sign up to be part of our mailing list here.


3. Optimize the Display Design for Impact and Efficiency


While material and production cost will inevitably go up, smart design does more than look good — it also saves money across production, shipping, and installation.


Keep It Modular and Scalable

Design displays that break down into flat-pack components or nest inside each other for bulk shipping. This approach reduces freight costs — a big deal, considering LTL freight prices remain 10–15% higher than pre-pandemic levels (source: FreightWaves, March 2025).


Modular displays can also be reconfigured for different store footprints, giving you more flexibility for chain-wide rollouts.


Use Simple Assembly Techniques

Tool-free setups save time and reduce labor costs. Incorporate locking tabs, slide-in panels, or magnetic graphics for fast refreshes — especially important if store staff will be handling installations.


Prioritize Eye-Level Messaging

Design hierarchy matters. Keep your hero messaging and product at eye level to increase engagement. Lower panels can house product specs, QR codes, or restock inventory.


Check out our post on 5 Types of Store Display Graphics


4. Select the Right Display Partner


The partner you choose can make a major difference in how smoothly — and cost-effectively — your display comes to life. A good partner doesn’t just build what you ask for; they help you think through what you actually need to meet your retail goals within budget, timeline, and compliance constraints.


Look for a team that offers:

  • In-house design, prototyping, and assembly, which streamlines production and keeps quality control tight

  • Experience working across retail environments, from big-box to independent channels

  • Deep understanding of materials and tariffs, so they can suggest smarter sourcing and avoid unnecessary costs

  • Flexibility with both custom and semi-custom solutions, so you can scale intelligently


Work With Vendors Who Stay Informed

The best vendors proactively flag materials or components with changing duty rates. Some will even quote you multiple options — one with imported materials and one with domestic or tariff-free alternatives.


Whether you’re launching a national rollout or a regional pilot, the right partner becomes an extension of your team — one that anticipates challenges, offers solutions, and helps stretch your budget without compromising the final result.


Final Thoughts:

Smart Displays Are Strategic Displays


Creating an amazing, cost-effective store display in today’s retail and trade environment requires more than creative flair — it requires strategic execution. The good news? With clear goals, smart materials, optimized design, the right partners, and a little tariff awareness, you can build displays that impress customers and protect your bottom line.


SOURCES & REFERENCES:


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