Earlier this year, President Donald Trump rolled out several tariffs on foreign goods and materials commonly imported into the U.S. The initial impact of these import tariffs was widespread, with sudden increases in business costs. As a result, some of the additional tariffs were put on a 90-day pause to temporarily alleviate some of the pressure.
Despite the pause on some tariffs, others remain in effect, such as those on Chinese goods, steel and aluminum. Additionally, there are many concerns over price increases once the 90-day pause ends. The current tariff landscape and others that are paused can both have a big impact on the event industry.
Many imported goods and raw materials are used for displays, booths, and event decorations. Plus, a lot of technology used to put on presentations, like audio and visual (AV) equipment (often containing imported components), is affected, too. In this guide, you’ll learn how these tariffs can impact your events, why Event Management Software For Associations is more essential than ever, and strategies that your organization can use.
How Do Tariffs Influence Event Costs?
Tariffs are taxes placed on foreign countries’ goods when they enter the country. They end up increasing the price of those products. The purpose of tariffs is to encourage the use of local resources rather than imported goods and materials. The current administration uses them as a negotiation tactic. If U.S. businesses start buying less imported goods, the country gets better leverage to negotiate prices with China and other countries with which the U.S. commonly does business. These are often referred to as reciprocal tariffs or retaliatory tariffs, depending on the policy intent.
However, because the U.S. has used imported goods for so long, there isn’t enough infrastructure and availability in the country to rely on domestic manufacturing alone. Therefore, many businesses and industries still need to use imported materials.
Common Event Costs Affected by Tariffs
Tariffs can have a big impact on event budget planning. For instance, tariffs are still active on steel, aluminum, and softwood lumber. Those materials are often used to construct stages, booths, and displays at events. It can increase the production costs to buy or rent essential infrastructure during events like trade shows, conferences, or exhibitions.
Tariffs are currently paused on computers and smartphones. However, a lot of the audio and visual equipment used at events may still be affected. For example, projectors, screens, microphones, sound systems, and lighting rigs may all use imported hardware that costs more because of Trump’s tariffs.
The ECA Tariff Resource Center lists the tariffs currently in effect, as well as the current plans to increase some tariffs after the first 180 days. After the current 90-day pause ends, and if those further increases happen, it could have an even bigger impact. Common things used at events, like promotional items, signs, badges, food, and beverages, could all become more expensive due to higher tariffs and economic uncertainty.
What Are Some Case Examples of Tariffs Impacting Events?
Here are some case studies and real-world examples further showcasing the tariffs’ impact.
1. International Conference Cost Increase
One of the biggest impacts would be travel expenses. Airline costs are increasing due to tariffs on materials like aluminum and steel needed to construct and repair planes. Therefore, it may lead to increased prices for flights, especially international. It could make it harder for attendees to reach the destination when they need to travel.
Additionally, sourcing goods and materials for international events may become more challenging as the tariffs impact global supply chain operations. Organizations hosting events in multiple locations would have to work with multiple suppliers in each area to ensure they can get everything they need affordably.
2. Tariff Effects on Technology Rental for Events
As mentioned, event technology like projectors, lighting, sound systems, and microphones often uses imported hardware. The tariffs could lead to higher costs to produce these items, making rental costs go up to secure them for your event. You’d have to adjust your event budget or activities to work around those increased expenses.
3. Impact on Imported Decoration Materials
Textiles, fabrics, wall hangings, and other materials used for decoration are commonly imported from China and other countries affected by the tariffs. It could increase costs to create high-quality designs, themes, and presentations for all types of events.
Key Considerations for Event Planners
Factors to consider for event professionals and event organizer teams include:
- Stay up to date on international trade policies and costs to know how the current tariffs are affecting prices on imported goods.
- Identify and understand tariff-related risks for vendors. It’ll help you understand why vendors are increasing prices for certain items and identify where there’s room for negotiation.
- Make budget adjustments and create strategic planning frameworks early. Organizations may need to adjust their budget or start planning for new events earlier, around cost basis and pricing constraints.
How Can Event Planners Mitigate the Effect of Tariffs?
The tariffs will affect many factors, but there are still some mitigation strategies that can assist with cost reduction. That includes:
- Negotiation with suppliers for cost-efficient goods. Having good relationships with multiple suppliers will be even more important. Negotiating deals that benefit both sides, or having them help you find more cost-effective materials that still work, will be essential.
- Exploring local alternatives. Anywhere you can find domestically manufactured goods and materials for event activities and decorations will help. Search and reach out to local vendors early while planning your event to ensure you can secure what you need.
- Adding cost contingencies to budgets. When planning events in advance, you never know how tariff changes will affect prices. Have a backup plan and see what you can go without if you can’t afford everything.
How Our Eventscribe Software at Cadmium Can Help
Given the changing landscape of the event industry, you need an organized system to plan and prepare effectively while setting up events. Cadmium’s event management software Eventscribe is built to help associations and nonprofits during each event planning phase. That includes:
- A robust set of tools for logistics and resource planning
- An analytics system to track and manage essential data
- Exhibitor and sponsor management
- Speaker and presentation management
- Virtual attendee registration
- Attendee engagement solutions, including adding virtual activities
The tariffs and price uncertainty pose a challenge, but you can still plan successful events that benefit your organization with the right strategies in place. Click here to learn more about how Eventscribe can help.
