Tariffs have been around for centuries. Commonly used to protect emerging industries or bolster national security, tariffs have evolved beyond trade tools into economic levers that can shift markets overnight. Tariffs have re-entered the conversation for mid-sized business leaders, especially those with global supply chains or international customer bases. But here's the thing: reacting like it’s still 1995 won’t cut it.

Part 4: Avoiding the Panic Button

Tariffs introduce complexity, but they don’t have to cause chaos. Yet that’s what we see far too often: businesses making hasty decisions, operating in silos, or misjudging the impact entirely. The result? Margin erosion, customer churn, internal confusion, and even lost deals.

Let’s break down the five most common—and most costly—mistakes we see:

Too many businesses treat a tariff percentage as a blanket cost increase. But the true impact is layered—what percent of your cost of goods is affected? What’s the blended effect after pass-through and discounts? Failure to model this correctly leads to pricing missteps and competitive disadvantage.

Tariffs affect the entire value chain. Yet, in many organizations, the issue is pushed to procurement or finance alone. Sales, marketing, operations, and customer success should all be part of the response.

Your frontline team needs tools, messaging, and training to confidently explain price adjustments. Without it, they may discount reflexively or damage trust with vague answers.

Waiting until tariffs hit to respond limits your options. Leading companies build contingency plans, forecast scenarios, and review supplier exposure regularly.

5. Communicating Poorly (Or Not at All)

Silence is rarely strategic. Keep customers informed. Show them how you’re navigating this together. Clear communication builds trust even when the news isn’t great.

Manufacturer Action Plan: Avoiding Common Pitfalls

Avoiding these missteps requires process, discipline, and a little foresight:

• Build a Cross-Functional Tariff Response Team: Ensure finance, supply chain, marketing, and sales collaborate—not just react. Get facilitation help and work together from the start.
• Clarify Tariff Math: Equip teams with real examples of how tariffs flow through pricing and margin structures.
• Document Assumptions: Create a "tariff playbook" that captures decisions, scenarios, and rationale for future reference.
• Implement a Communication Protocol: Decide who says what, when, and how to customers and partners when tariffs hit.
• De-risk Your Supply Chain: Proactively evaluate geographic and material dependencies before they become liabilities.

Key Takeaways

1. Tariff impact is complex. Get the math right before you act.
2. This isn’t just a procurement issue—engage the full go-to-market team.
3. Sales needs enablement to communicate changes confidently.
4. Build scenario plans before disruption hits.
5. Communicate proactively, transparently, and often.

What’s Next:

In the final installment of the series, we show how some companies didn’t just survive tariffs—they used them as a growth lever.

In the meantime, schedule your free 1-hour consultation now.

Catch up on the full series:

• Tariffs and Your Next Chapter: Turning Disruption into Go-to-Market Growth
• Tariffs and Your Next Chapter | Selling Through Tariffs: Avoiding the Pricing Traps
• Tariffs and Your Next Chapter | Buying in a Tariff Economy: Smarter, Not Cheaper
• Tariffs and Your Next Chapter | The 5 Biggest Mistakes Leaders Make Around Tariffs
• Tariffs and Your Next Chapter | From Cost Burden to Market Edge: Turning Tariffs into a Competitive Advantage