Tariffs are no longer a looming political talking point—they’re active policy. With President Trump back in office, sweeping new tariffs have already taken effect: a 10% universal tariff on imports from 185 countries, and rates as high as 125% —with potential increases up to 145% — on Chinese goods. These changes are triggering cost surges across industries, especially those in technology, manufacturing, and consumer goods with complex international supply chains.
When input costs spike due to tariffs or supply chain volatility, many businesses default to a flat price increase. But that can backfire—especially when customers don’t perceive equivalent value. On one hand, you risk margin loss. On the other, you risk customer churn. And in today’s market, you don’t have time for a lengthy pricing overhaul—you need fast, confident decisions.
For business leaders, this moment is a crucial reminder: pricing and portfolio strategy can’t be treated as static. They have to be resilient, responsive, and deeply informed by how customers actually think, feel, and behave.
Why This Matters Now
Whether it’s tariffs, inflation, supply chain instability, or geopolitical tensions, cost shocks are becoming more common. But most pricing strategies still assume a level of stability that no longer exists.
Companies are being squeezed from both sides:
- Costs are rising or fluctuating due to external forces
- Customers are more price-sensitive and selective about where they spend
With tariffs already impacting bottom lines and customers tightening their wallets, two strategic levers can make or break your margins: pricing strategy and portfolio optimization.
Two Strategic Levers Every Business Should Re-Examine
(1) Pricing Strategy: Make Pricing a Competitive Advantage
Now’s the time to look beyond cost-plus models and ask deeper questions:
- Which customers are actually price-sensitive—and which ones aren’t?
- What trade-offs are customers willing to make between price and value?
- How is competitor pricing shaping customer expectations?
- How should we message pricing changes so they feel justified and fair?
In volatile times, pricing can’t be a spreadsheet decision. It has to be informed by market insights, customer behavior, and competitive positioning.
RELATED: The Ultimate Guide to Strategic Research for Breakthrough Product Positioning
(2) Portfolio Optimization: Align Your Portfolio with What Customers Value Most
Not every product or service in your portfolio will thrive under cost pressure. Some might become unprofitable. Others might be redundant. Some might be hidden gems, overlooked by your sales or marketing teams.
Portfolio optimization is about focusing your energy on what matters most:
- Which offerings drive the most loyalty, growth, and resilience?
- Which combinations of features, products, or services appeal most to your target audience?
- What could we remove, streamline, or reposition to simplify the buying decision?
How Research Makes The Difference
This is where research comes in. Tools like conjoint analysis, MaxDiff, TURF, and price sensitivity modeling can help companies see what customers truly value—and what they’re willing to pay for.
At Heart+Mind Strategies, we help clients:
- Identify pricing sweet spots across customer segments
- Test new pricing models, bundles, or offers before going to market
- Prioritize offerings based on what actually drives consideration and choice
Especially in moments of uncertainty, research helps businesses move from guesswork to grounded, confident decisions.
The Bottom Line
Tariffs are no longer a looming threat—they’re a reality. And while trade policy may be out of your control, how your business responds and how you shape your marketing message for your customer is entirely within your hands.
Smart companies are treating this moment not as a threat—but as a catalyst to sharpen their pricing, portfolio and customer strategies. We’re already seeing clients ask the right questions—and getting ahead of the curve.
Don’t wait until tariffs take a bigger bite out of your margins. Act now to strengthen your pricing resilience. Connect with us if you’d like to explore how research can help you respond with confidence.
Upcoming Connections Webinar
Want to hear industry experts and Heart+Mind consultants dive deeper into this issue? Join us for our Connections roundtable webinar in June “Navigating New Tariff Territories: Pricing Strategies for Your Product Portfolio”. Sign up here to be notified when registration opens.