Businesses and consumers alike are feeling the impact of rising tariffs. When tariffs increase, the cost of imported products, can spike quickly, putting pressure on pricing across industries, from electronics and home goods to furniture, wellness equipment, and personal care services. For retailers and service providers, this creates a challenging balancing act: pass costs on to consumers and risk losing sales, or absorb them and strain margins.

Recent data underscores this impact: a Federal Reserve analysis found that major retailers like Walmart have raised prices on various products, including toys and office supplies, following the imposition of a 145% tariff on Chinese imports in April, which was later reduced to 30%. Federal Reserve New York Post

With fluctuating rates an increasingly effective strategy for easing this pressure is offering consumer financing. Giving customers the option to break up payments over time can soften the blow of tariff-driven price increases, maintain demand, and preserve loyalty, even in uncertain economic conditions.

1. Helps Customers Afford Higher Prices Without Sacrificing Quality

When tariffs drive up product costs, many consumers are forced to make difficult decisions: delay purchases, downgrade quality, or cut out non-essential items altogether. Consumer financing changes the conversation by turning a potentially high upfront cost into manageable monthly payments.

Let’s say a wellness center imports high-end massage chairs from overseas. A tariff increase raises the cost per unit by 15%. Rather than pricing out loyal clients or compromising on the quality of offerings, the center can present an alternative: "Invest in wellness today, pay over time."

For the customer, that 15% price increase is less painful when distributed across 12 or 24 months. For the business, it means preserving sales volume, maintaining brand value, and staying competitive.

2. Encourages Bigger Ticket Purchases and Higher Order Values

During times of economic uncertainty, consumers tend to spend more conservatively. But financing can shift the mindset from “What can I afford now?” to “What can I comfortably pay for over time?” This shift often results in larger average transactions.

Consider a customer shopping for an air purifier, spa package, or gym equipment upgrade. If tariffs have increased the base price, they might settle for a more basic option or abandon the purchase altogether. Offering financing options especially with low or no-interest promotional terms can be the key to moving them toward a higher-value purchase.

It’s not about pushing unnecessary upsells; it’s about giving customers the financial flexibility to choose the product or service that best meets their needs without compromise.

3. Builds Trust and Loyalty During Financial Strain

When customers are under financial pressure, transparency and support go a long way. Offering financing show understanding of consumers' position. It also signals that your business understands current economic challenges and wants to offer solutions rather than obstacles.

This approach can build customer loyalty, especially if:

• Financing terms are clear and easy to understand

• There are no hidden fees or predatory lending practices

• The application process is fast and frictionless

A customer who feels supported financially during a difficult time is more likely to return, recommend your business to others, and develop a stronger long-term relationship.

4. Reduces the Impact of Tariff Volatility on Your Business

Tariffs aren’t always predictable. They can rise or fall due to trade disputes, policy changes, or geopolitical events and businesses must often react quickly. Financing offers a tool for smoothing out this unpredictability.

Rather than adjusting pricing constantly to match shifting costs (and confusing or frustrating your customers), financing gives you a buffer. You can maintain stable pricing tiers and use financing promotions to increase affordability, keeping demand steady even when the underlying costs are fluctuating.

In short: financing can act as a stabilizer in an unstable pricing environment.

5. Works Across Industries—Not Just Retail

While financing is often associated with physical goods, it's increasingly used in service-based businesses as well especially in sectors where pricing is sensitive to global supply chains or specialized equipment.

Examples include:

• Health & Wellness: Tariffs on imported wellness equipment can raise treatment prices. Financing makes it easier for clients to commit to packages or memberships.

• Beauty & Aesthetics: Devices used in med spas or dermatology clinics may cost more due to tariffs. Financing can ensure patients still follow through with recommended services.

• Home Improvement: Appliances, materials, and fixtures affected by tariffs can increase overall project costs. Offering financing gives homeowners more flexibility.

No matter your industry, if your offerings are impacted by rising input costs, consumer financing can help mitigate the friction.

Final Thoughts

High tariffs are a reality of today’s global economy and they may not be going away anytime soon. For businesses, the challenge is finding ways to maintain accessibility and affordability without sacrificing quality or margins.

Consumer financing offers a powerful, practical solution. By giving your customers more payment flexibility, you help them absorb cost increases, preserve purchasing power, and stay engaged with your brand. In the long run, that’s not just good for your customers, it’s good business.