Tariffs have redefined commercial strategy

Your old playbook won’t work in today’s tariff-driven economy

Inflation-era pricing logic no longer applies. Tariffs strike unevenly and unpredictably, redrawing cost structures and distorting market dynamics overnight. To succeed, companies need a new kind of pricing strategy: one that’s built for fragmentation, speed, and value-based decisions.

Simon-Kucher is the global leader in pricing and commercial growth. And in a tariff-disrupted world, pricing strategy is no longer an operational afterthought. It's the front line of growth, margin protection, and competitive advantage.

Six critical questions for CEOs

Tariffs have fragmented the market. They’ve exposed weaknesses, but also created rare, asymmetric opportunities for those ready to think clearly and act boldly. If your competitors are pricing for today, you can gain ground by pricing for tomorrow.

How you lead now will determine whether it becomes a source of resilience or regret. And while CEOs don’t need to micromanage pricing models, they do need to ask the right questions. This guide sets those out.

Do we know our pricing power?

This is the first and most urgent question you should be asking because everything else, from cost responses over margin recovery to customer communication, depends on the answer.

Tariffs don’t hit everyone the same way. Depending on your supply chain structure, product mix, markets you serve, and competitive positioning, you may be disproportionately affected, or unexpectedly advantaged. Some businesses are discovering that they can pass through costs with little resistance. Others are finding out, often too late, that even modest price movements result in sharp volume declines. And many don’t know where they stand because they’ve never had to test it.

What pricing playbooks are we using?

Pricing playbooks shape decisions. They define who takes action, what tools are used, and how quickly the organization can respond. They’re built over years of experience. However, in the wrong context, they can quickly become liabilities.

As CEO, asking this question reveals how your organization is framing the problem. If your teams are treating tariffs as just another flavor of inflation, they’re likely missing critical nuances and applying tools designed for a completely different challenge. This question helps surface whether your pricing response is grounded in relevance or stuck in repetition. 

How are we managing the relationship between cost, price, and value?

By the time this question lands on your agenda, you should have already made a key realization: Just because your costs have changed, doesn’t mean your prices should. And just as importantly: your prices may need to change, even if your costs haven’t.

In this environment, reacting to cost is a losing game. It leads to blunt decisions, undermines customer trust, and often misaligns price with perceived value. The companies that succeed are those that understand: price, cost, and value are not synchronized, and never were. This question invites a deeper conversation. 

Are we set up to balance speed with strategic control?

Pricing in a tariff-driven world requires speed. It also requires precision, oversight, and alignment. These demands can feel contradictory. And yet, they must co-exist.

Some of the most resilient companies we've seen are those where local teams have clear authority to move fast, but with shared intelligence, aligned goals, and connected systems that ensure one market’s gain doesn’t become another’s loss. Without that coordination, one market’s well-intentioned pricing move can undo another’s strategy. Worse, you risk creating pricing inconsistencies that invite arbitrage, damage brand equity, or alienate strategic accounts.

Are we leveraging AI to stay ahead of tariff volatility?

Tariffs introduce rapid, unpredictable cost shifts that legacy pricing systems can’t handle effectively. Forward-thinking companies are using AI to predict tariff impacts, identify hidden pricing power, and adjust strategies in real time.

CEOs must ensure AI isn’t just a reporting tool but a strategic enabler: one that empowers teams to respond swiftly to market fluctuations, protect margins, and capitalize on emerging opportunities.

Are we owning the story – or letting volatility tell it for us?

Market disruptions can quickly distort your narrative if you’re not in control of the messaging. CEOs must proactively align teams around a cohesive story that frames business decisions as strategic, intentional moves, not reactive responses. This approach not only preserves brand reputation but also strengthens leadership credibility.

Owning the story means setting the agenda rather than responding to it. A clear, unified narrative turns uncertainty into an opportunity to reinforce strategic direction, communicate value, and maintain market confidence.

Tariff strategies tailored for every sector

Tariffs strike certain categories, sectors, or trading relationships without warning – sometimes even while goods are in transit. Learn how leading companies in your industry are adapting pricing strategies to protect margin and capture opportunity.

  • Consumer
  • Financial Services
  • Healthcare & Life Sciences
  • Industrials

Sector insights

Navigating price-sensitive markets requires targeted responses. Learn how selective pricing adjustments protect market share.

Sector insights

Indirect tariff impacts ripple through financial markets. Price strategically to sustain margins and client trust amid shifting cost dynamics.

Sector insights

Manage complex regulatory environments and tariff-induced cost pressures. Implement adaptive pricing strategies to maintain market access and margins.

Sector insights

Complex sourcing, high exposure, and immediate need for new price lists and simulation scenarios.

Regional approaches for tariff resilience

While tariffs and inflation are global phenomena, their effects are anything but uniform. Regional dynamics, from local competition to regulatory policy, demand tailored pricing strategies. Explore how businesses are adjusting their commercial approach across markets.

  • Tariffs reshaping the competitive landscape for European firms

  • Tariff readiness: Practical strategies for resilient growth in North America

  • Commercial excellence in APAC amid global tariff turbulence

Tariffs reshaping the competitive landscape for European firms

 

European businesses are increasingly vulnerable to the ripple effects of US tariff policy, even without direct exposure. From retaliatory measures to redirected supply chains and intensified competition from Asia, companies must act now to protect market share. Our strategies help organizations prepare for sudden shifts, strengthen cross-functional response capabilities, and turn tariff-related disruption into a source of long-term resilience.

See how companies are staying competitive in tariff-disrupted markets. 

Tariff readiness: Practical strategies for resilient growth in North America

 

With shifting trade policies and rising cost pressures, US businesses must prepare now to avoid disruption and protect profitability. Whether in consumer goods, industrials, or tech, companies are reevaluating supply chains, strengthening supplier relationships, and sharpening pricing strategies. Our local experts offer hands-on guidance to help you audit risks, boost agility, and stay ahead of tariff-driven volatility.

See how companies are staying competitive in tariff-disrupted markets. 

Commercial excellence in APAC amid global tariff turbulence

 

With export-heavy economies and rising exposure to US tariffs, APAC businesses must act fast. From pricing optimization and supply chain shifts to brand building and strategic partnerships, companies are rethinking their commercial models to navigate mounting volatility. Our regional experts share clear, actionable strategies to protect margins, build resilience, and turn today’s disruption into tomorrow’s growth.

See how companies are staying competitive in tariff-disrupted markets. 

Ready to strengthen your strategic position?

Tariffs don’t just disrupt, they reveal where your strongest levers for growth and resilience lie. Let’s pinpoint your strategic advantages and turn uncertainty into opportunity.