Stand firm

Tariff spirals, stock market turmoil, trade wars – in the editorial of the May issue of PSI Journal, Deputy Chief Editor Ursula Geppert examines the consequences of erratic US policy. …

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Spiralling tariffs, stock market turbulence, and trade wars – the consequences of erratic American policy-making are shaking the world and unsettling the economy. When decisions of global relevance are made almost daily with the stroke of a pen and often revoked the very next day, when facts, institutions, alliances and even history are called into question, rational people reach the limits of what they can bear. A situation in which certainties wane and the previously unimaginable suddenly becomes reality is fertile ground for worries and fears. This is understandable and can currently be observed worldwide. The threat of recession, long-term market disruptions, a shift in the global flow of goods, monetary turbulence, political conflicts and, last but not least, a loss of prosperity and confidence are just some of the far-reaching upheavals that the world will have to deal with in the future.

Whether on the world stage or in a personal context, such upheaval always makes us year for security and stability. We seek continuity, reliability and orientation. We enjoy beautiful things and are receptive to anything that gives us a sense of belonging and experience. Brands can offer all of this. They are beacons in the unpredictable ups and downs over time and convey firm values and consistency (see Focus starting on page 10). Brands also thrive on image and credibility, which need to be carefully cultivated. This makes them vulnerable. The great danger of brands jeopardising their credibility for the sake of profit can currently be seen in the USA. Quite a few corporations that previously boycotted the platform X due to its unacceptable practices returned after the US elections to avoid getting off on the wrong foot with the all-too-powerful Trump-Musk alliance. This attitude is rightly criticised in the media as short-sighted and inconsistent. The Tesla case shows that an entrepreneur can even cause considerable, possibly irreparable damage to his own brand. Elon Musk has ruined the reputation of the former flagship brand Tesla in his own quest for power and exposed himself to ridicule from the competition. Sales slumps and acts of sabotage have added to this.

The promotional products industry is also affected by the economic consequences of customs policies. Even before the escalation of this conflict, companies had to work longer and harder for fewer and smaller orders. This is not getting any easier now. The only thing that can help is to persevere and convince customers of the advantages of haptic advertising with powerful arguments while also referring to relevant studies. And where budgets are decreasing, a branded product that conveys appreciation and solidity can be a promising solution. 

Ursula Geppert | Deputy Chief Editor PSI Journal