Tariff Turmoil: Event Planners Face Rising Costs and Uncertainty 

New tariffs are impacting food and beverage pricing, audiovisual equipment rentals, and event infrastructure. 

A 25% tariff on goods from Mexico and Canada took effect on March 4, prompting Canada to retaliate with tariffs on $21 billion on U.S. imports, including steel and aluminum products, produce, appliances, and liquor. Meanwhile, the Trump administration imposed a 10% tariff on Chinese goods in February, followed by another 10% hike in March.

Rising Costs for Event Essentials 

Tariffs on imported steel, aluminum, and lumber will increase the costs of exhibition booths, stages, and other event infrastructure. 

In addition, many audiovisual (AV) components are imported, so tariffs could drive up the rental costs of projectors, screens, and sound systems.

To counter these rising costs, planners are responding by diversifying supplier networks to include more domestic vendors. Budgeting adjustments and contingency plans are also becoming standard.

Frontload Equipment Purchase 

AV companies stocked up on essential equipment at the beginning of the year. “A lot of AV companies went out and pre-purchased items before the tariffs went into effect. They bought all the things they would have bought throughout the year all at once. Many will have to leverage higher prices to offset this cost,” said Matthew Byrne, founder and president of Byrne Production Services.

Typically, AV firms allocate 15-20% of topline revenue for capital expenditures. This year, Byrne’s company condensed its spending into the first two months, investing nearly $500,000 early to avoid higher costs later.

Monique Rochard-Marine, head of global commercial services at Cordis, said that AV costs were rising even before the tariffs.

“AV companies don’t want to budge. We send them the full AV quote from other hotels for the exact items the previous year, and it’s at least 10% more. I cannot imagine what it will be with the new tariffs,” she said. “The only thing we can do is continue to educate our leadership teams and advocate for more budget to help with these additional costs, and hope they understand that our industry is impacted like everyone else.”

Contract Challenges and Global Shifts

For planners locked into pre-tariff contracts, adjusting to the new cost landscape is proving difficult.

Eric Burns, principal consultant at Interhouse Solutions, submitted an RFP before tariffs were implemented for an event later this year. One activity involves attendees assembling a computer using materials sourced from either China or Canada.

“It’s a problem because our quote was based on pre-tariff pricing,” Burns said. “Now, if the program moves forward, we’ll have to negotiate how to handle the increased costs.”

Global Event Sourcing Becomes More Challenging

Beyond direct price hikes, tariffs are reshaping global event sourcing. Some organizations are moving programs away from the U.S. due to political and economic uncertainty.

“The current geo-political landscape is creating uncertainty, and with uncertainty comes indecision. It is understandable that organizations are wary of making decisions about moving forward with programs when the current situation has people concerned about fluctuating currency, corporate earnings due to stock market volatility, border concerns, and travel visas,” said Jennifer Glynn, managing partner at Meeting Encore.

Glynn has seen a decline in U.S. destination sourcing from Canadian clients, with increased interest in Mexico and Europe since Trump took office. “We are sourcing programs for 2027 and 2028 for our Canadian customers, and they are excluding U.S. destinations,” she said. 

Canadian demand is impacting prices. “Rates are climbing as more groups stay local,” said Glynn.