In an age of rising protectionism, shifting alliances, and economic nationalism, the rules of global trade are in flux. From tequila tariffs to clean beauty border blocks, the political climate is no longer just a background concern, it’s a frontline force shaping how, where, and whether consumers interact with your brand. Here’s how it’s playing out across key lifestyle categories:

🥃 Alcohol: The Frontline of Friction

Alcohol remains one of the most sensitive and symbolically charged imports across borders. New tariffs, like Canada’s response to U.S. trade aggression, are already driving drastic shifts in market behaviour, with US spirits sales in Canada projected to drop 81% in 2025 (IWSR). Meanwhile, in China, geopolitical tensions are compounding with local preference for homegrown brands, making it harder for foreign SKUs to hold shelf space without localised relevance or premium storytelling. Tariffs on agave-based spirits, Scotch, or bourbon can also instantly reposition price tiers, warping category dynamics overnight. For alcohol brands, global agility and locally grounded POSM will be critical in navigating political volatility.

🍹 Non-Alc Beverages: Fast Growth Meets Fragility

The non-alcoholic space is booming, but its supply chains often stretch across borders, especially for functional or niche ingredients (think adaptogens, botanicals, exotic fruits). As new labeling regulations, ingredient bans, or climate tariffs come into play, brands face the dual challenge of cost pressure and compliance scrutiny. In the US, the FDA is already scrutinising “alcohol-adjacent” categories, while in Europe, new proposals around nutritional transparency for beverages may increase friction. This puts pressure on brand messaging, packaging accuracy, and ingredient sourcing, all of which need to be built for both compliance and consumer clarity. The golden era of fast-track global expansion is ending; now it’s about smart, strategic localisation.

🍽️ Food: Protectionism on the Plate

The food category has long been used as a political chess piece, and it’s heating up again. From wheat tariffs to carbon footprint-based import restrictions in the EU, climate-aligned trade policy is changing what’s viable to export, especially for mass and processed categories. Premium and niche food brands must now balance sustainability messaging with origin visibility. Meanwhile, cross-border e-commerce food brands will face higher scrutiny and slower customs timelines, particularly in Asia-Pacific and the Middle East. For POSM and packaging, the message must pivot to transparency, traceability, and local resonance, while staying agile enough to react to geopolitical shifts at pace.

🧴 Beauty: Clean is Political Now

Beauty brands that trade on "clean", "natural" or "certified" claims are entering regulatory turbulence. What qualifies as "clean" in one country may be banned, taxed, or redefined in another. The EU is tightening cosmetic ingredient rules, while the US and China are diverging on animal testing, ingredient safety, and greenwashing enforcement. For global beauty players, tariffs may be less of a direct hit than regulation mismatches, but the result is the same: increased friction and rising compliance costs. Successful brands will need POSM that can flex regionally, swapping claims, visuals or language, while maintaining a cohesive global brand feel.

👜 Lifestyle & Fashion: Nationalism Meets Consumerism

For lifestyle and fashion brands, the threat is less about tariffs on finished goods and more about ideological scrutiny. “Made in X” suddenly carries cultural weight. In a more politically charged world, country-of-origin can boost or break a brand, especially among Gen Z and Gen Alpha audiences that link ethics to everything. Recent pushbacks on fast fashion from specific regions and rising support for local brands mean that storytelling, sourcing transparency, and perceived intent are more important than ever. Expect more demand for hyper-local campaigns, POSM that nods to regional culture, and cross-border influencers who build bridges instead of barriers.

🧠 Merch & Effect POV

The era of global sameness is over. Tariffs, tensions and trade shifts are forcing brands to become hyper-literate in local nuance, not just in compliance, but in emotion, design and execution. At Merch & Effect, we see this as a creative opportunity. When done right, physical marketing can serve as both a compliance-safe format and a cultural translator.

Whether it’s swapping a GWP in São Paulo, tweaking copy in Montreal, or reimagining display structure in Seoul, those who adapt fast will win slow. Because agility, not access, is the new competitive advantage.