The news: Despite voters signaling concerns about rising prices and affordability at the ballot box, the Trump administration is “quadrupling down” on tariffs, White House trade adviser Peter Navarro told The Washington Times.

Why this matters: Tariffs are adding to the financial pressures squeezing consumers’ spending power.

The Trump administration’s tariff policy is costing the average household about $900 this year, according to the Yale Budget Lab.

The policy has also done little to achieve one of President Trump’s central goals of bringing manufacturing back to the US. The administration hasn’t addressed the economics that drove production overseas: higher US labor costs, skilled-worker shortages, and productivity gaps with foreign competitors.

For example, TOV Furniture’s attempt to reshore production to North Carolina produced a sofa that cost nearly twice as much to make as in Vietnam, forcing the company to close its factory after just 10 months and roughly $3 million in losses, according to The Wall Street Journal. Constantly shifting tariff rates compound the challenge, creating uncertainty that makes it harder for businesses to justify long-term investments in US production.

Implications for marketers: Price relief from Washington is unlikely to come quickly, keeping affordability top of mind for consumers well into next year.

Democratic victories in the midterms give the party congressional majorities to pursue an affordability-focused agenda. But repealing tariffs will entail overcoming opposition from the Trump administration. Overriding a presidential veto would require 67 votes in the Senate and 290 in the House, assuming all members vote.

Meanwhile, the ongoing war in Iran is adding to consumers’ financial strain, driving up costs for everything from airfare to fertilizer. With little sign of the conflict easing, discretionary budgets are likely to remain tight next year.

For brands, that makes demonstrating value essential to winning consumers’ limited discretionary dollars. Marketers should emphasize what shoppers get for their money, not just the price, while making lower-cost options and promotions easy to find.

Go further: Read about what the midterms mean for marketing, AI, and the cost of living in our report “Democrats take the House and Senate.”