The Ripple Effect of US Tariffs: Protecting Brands from Price Gouging and Disinformation

Key Findings

The United States announced a new trade policy involving "reciprocal tariffs" on goods imported into the US. This includes a baseline tariff of 10% on imports from all countries, and individualised tariffs have been imposed on specific countries. The US states these tariffs are necessary to address trade imbalances, protect American workers, and encourage domestic manufacturing. 

Although certain goods like semiconductors, copper, pharmaceuticals, and lumber are exempt, this policy is expected to slow exports to the US. Such a move potentially increases prices for American consumers, and has prompted governments like Malaysia, to coordinate a response with ASEAN nations. 

Who it affects and why it matters

Economists and US allies were alarmed by the sudden shift toward protectionism, fearing it could trigger a global trade war. China, the EU, and Canada quickly retaliated with tariffs on American goods, intensifying tensions. Global stock markets responded with volatility, while businesses braced for uncertainty and potential supply chain disruptions. The ripple effects of the tariff announcements also create fertile ground for misinformation and disinformation, posing misinformational risks for any brands connected to the US market. Here are some of the key risks to be aware of:

• Fake news of  flip-flopping policies: With uncertainty surrounding how tariffs will be implemented, misleading headlines can cause confusion and fuel unnecessary market volatility. Rumours of policy shifts can send shockwaves through supply chains and investor sentiment.
• Unjustified Price Hikes: Some businesses might exploit the situation by falsely claiming that the tariffs necessitate significant price increases, even for goods not directly impacted or with increases exceeding the actual tariff rate. This could lead to price gouging and erode consumer trust.
• Calls for Boycotts of US Brands:  Misinformation can stir public sentiment and spark boycott calls or falsehoods against American brands — particularly in markets like Malaysia, where local forums such as Reddit are already promoting “buy local” narratives. 
• False narratives of protectionist policies:  Fake news suggesting retaliatory measures from ASEAN or other regions may fuel unnecessary anxiety. These narratives risk deepening anti-trade sentiment and undermining legitimate diplomatic efforts to manage trade tensions.
• Challenges in doing business in the U.S:  Selling into the US is now more complex, with higher costs and increased volatility. Consumers may be unsure whether price increases are fair or tariff-driven, creating fertile ground for misinformation — and making it harder for businesses to communicate transparently.
  
  

Trends & Development

While governments may pursue diplomatic approaches, grassroots backlash can still hurt brands linked to the U.S.  Malaysia, like many other governments, are pursuing diplomatic solutions and not advocating for retaliation, such sentiments could still emerge and impact businesses with ties to the US market.

Companies with brands in the US market, or keen to do business with Americans, must get hold of accurate information.  With tariffs shifting quickly, businesses must verify news from credible sources before making operational or pricing changes. In today’s information war, misinformation and disinformation is a strategic risk — not just a PR issue.

Mitigation Opportunities

Faqcheck has the expertise to track spiraling chatter, fast-moving news cycles, and the false narratives that often emerge from major policy shifts. We know how to spot narratives that can carry serious consequences for businesses, consumers, and digital platforms alike. In this climate, it’s critical for businesses to prioritise clear, fact-based communication and reinforce their commitment to stable, transparent international trade relations.

Unverified news can trigger knee-jerk reactions across markets and supply chains. That’s why it’s strongly recommended that businesses proactively monitor and address misleading content — enabling better decision-making, preserving transparency, and protecting the trust of their customers.

Opportunities include:

• Developing robust monitoring procedures to counter misinformation and disinformation.
• Investing in AI detection tools to identify and mitigate fake content.
• Engaging proactively with the media to prevent misinformation from taking root.
• Actively managing and engaging with online comments to protect brand image.

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