A Tariffs and Pricing Strategy Guide: The Right Approach for Your Industrials Business

With potential tariffs looming, industrial companies are facing a familiar but complex challenge: how to adjust prices without alienating customers or losing ground to competitors. Should tariff-related costs be passed through as a separate surcharge or incorporated into a general price increase? Should price hikes happen before, during, or after the tariffs take effect? And how much of the cost should be absorbed versus passed along?

There’s no one-size-fits-all answer and the right pricing strategy depends on market dynamics, customer expectations, and your long-term positioning. 

When tariffs drive up costs, businesses have two main options —adding a surcharge or folding the cost into a general price increase. Each comes with advantages and trade-offs. The right approach depends on factors like customer expectations, industry norms, and pricing flexibility.

Below, we break down…