Article

Trust, tariffs, and turbulence

How to navigate pricing in an era of sudden trade shifts
Published

23 April 2025

In a volatile global trade environment, companies are under pressure to make fast and far-reaching pricing decisions. The recent announcement of a 20% US tariff – introduced with just 90 days’ notice and potentially subject to change – highlights how quickly the rules of international business can change. Will this spark retaliatory tariffs from the EU or lead to a new trade agreement – potentially reshaping policy not only between the US and EU, but also in relation to China and other major markets?


For many European exporters, this triggers an urgent question: adapt or absorb? But the real challenge is broader. How do companies navigate uncertainty in a trade landscape that is increasingly shaped by sudden regulatory changes and tariff adjustments? Tariffs may come and go, but the ability to respond decisively remains a lasting competitive advantage.


This article offers a case-based perspective along with a set of strategic questions that every leadership team should consider to ensure their pricing approach is robust, responsive, and aligned with their broader business strategy.


Case study: EU Industries (EUI)

Let us take the example of a hypothetical European industrial manufacturer – EU Industries (EUI) – which earns 35% of its revenue from the US market. With a 20% import tariff now looming, EUI faces a classic dilemma: should it absorb the cost or increase prices?


The decision is not just about margins – it is about market position, customer relationships, and long-term competitiveness. Here is how a structured assessment can guide the response:

EUI’s four-dimensional pricing assessment

Strategic self-assessment: Are you ready?


Before reacting to external shocks, businesses should take a moment to look inward. A well-prepared organisation is not just defined by its ability to respond, but by how clearly it understands its own strengths, gaps, and readiness. When it comes to pricing strategy in times of volatility, that starts with asking the right questions:

  1. Is your pricing strategy designed to handle volatility – such as sudden tariffs –with clear scenarios for different trade policy outcomes?
  2. Is your pricing operating model – including teams, tools, data, and processes – set up to execute cross-market changes quickly and in sync?
  3. Do you have the analytical capabilities to assess tariff exposure, model customer price sensitivity, and simulate competitor responses?
  4. Are your sales, marketing, finance, and product teams equipped to make fast, data-driven pricing decisions when trade conditions change?
  5. Are you currently in control of pricing – actively using it as a strategic lever to navigate disruption – or mostly reacting to operational or tactical challenges?

A 4-step playbook for tariff readiness


To turn disruption into opportunity and ensure that companies can be ready and not just responsive, we recommend following a simple but powerful four-step framework:

  1. Assess tariff exposure
    Quantify financial impact and exposure relative to competitors and product lines
  2. Set pricing strategy
    - Define pricing goals that reflect your strategic positioning, risk appetite, and expected tariff scenarios
    - Ensure your strategy is built to navigate volatility, with clear response options for both short-term and structural trade shifts
  3. Design the pricing operating model
    - Ensure clear pricing coordination, structures, and roles and responsibilities across sales, finance, marketing, and product teams
    - Build a model that connects strategy to execution, enabling the organisation to act fast and consistently across markets
  4. Execute the right plays
    Deploy the right mix of defensive and offensive moves (e.g., temporary surcharges, regional price updates, or bundled offers) to protect margins and sustain growth

Where to go from here?


Tariffs will rise and fall – but pricing capability must be built to last. Companies that use moments like these to review, realign, and refine their pricing strategy and operating model will be better equipped for future uncertainty. At Implement Consulting Group, we help organisations assess their readiness and build tailored response plans to stay competitive, resilient, and ahead of the curve.

Related0 4

Article
Read more
Subscription models in after-sales for industrial companies
The industry is undergoing a profound transformation, driven by digitalisation and increasing interconnectivity of machi...
Article
Read more
Navigating dilemmas in customer service
How insurance companies can solve critical challenges in their customer service.
Article
Read more
How to boost your brand’s profitability with net revenue management
Discover how NRM can transform your brand and see how you compare to industry leaders.
Article
Read more
A blueprint for designing your pricing operating model
Six dimensions to be considered to improve pricing operations.