Europe’s advertising industry representative body has responded to tariffs and the threatened trade war by the Trump administration in the US with a statement. The board of the European Association of Communication Agencies (EACA) said that in light of these developments, EACA emphasises the detrimental effects of tariffs on both consumers and businesses.
“We do not support tariffs in any shape or form as they are in effect taxes that reduce consumers’ purchasing power, reduce companies’ capacity to invest, and so our belief is that it is not good for business or economic growth,” stated Charley Stoney (pictured), chief executive, EACA, said.
EACA represents the European commercial communications sector whose business success relies on the principles of free trade. “We would always advocate for this to continue,” Stoney added. The organisation is committed to promoting the growth of brands and ensuring the accessibility of goods for consumers.”
Impact
EACA further highlights the essential role that advertising plays in fostering free trade and business growth. “Our industry has had a huge hand in protecting and promoting positive consumer behaviors, and as such, our impact on society cannot be underestimated,” Stoney noted.
In a call to action, EACA urges European brands and marketers to continue providing positive and balanced messages to citizens through their advertising communications. “Now is not the time to press pause but to reimagine the conversations you wish your brand to be associated with,” Stoney remarked.
“With specific regard to tariffs on media buying and creative services, the EACA acknowledges the uncertainty surrounding the issue. For example, if tariffs are placed on top of the digital taxation, then we have to be careful that the additional costs don’t end up being passed directly onto brands, thus doubly impacting the advertising sector and the broader economy.” Stoney explained.
“Tariffs are taxes, bad for businesses, worse for consumers” – Maroš Šefčovič, European Commissioner for Trade and Economic Security
As highlighted by Maroš Šefčovič, European Commissioner for Trade and Economic Security, and European Commissioner for Interinstitutional Relations and Transparency: “Tariffs are taxes, bad for businesses, worse for consumers. And by imposing tariffs, the US will be taxing its own citizens, raising costs for its own business and fuelling inflation”.
This sentiment echoes EACA’s concerns about the implications of tariffs on the advertising industry. EACA represents more than 2500 communications agencies and agency associations from nearly 30 European countries which directly employ more than 120,000 people in advertising, media, digital, branding and PR agencies.
