Tariffs are making waves again, and their unpredictability is keeping businesses on edge. With policies flipping overnight—think executive orders, sudden delays, and vague announcements—companies face a whirlwind of challenges economic turbulence, and daily volatility has rapidly become the new normal. On April 2, 2025, dubbed "Liberation Day," the U.S. rolled out tariffs on nearly all imports, amplifying the chaos. Across the Atlantic, Europe was not spared either, wrestling with its own tariff battles and trade tensions. But then tariffs were off again, on again, doubled down for China. Completely erratic. For industries like manufacturing, distribution, and chemicals, the question is: how do you stay afloat when such unpredictable circumstances prevail? The solution lies in swift action, clear communication, and harnessing pricing software to transform uncertainty into a strategic advantage.

This is where cloud-native, automated pricing software like Pricefx plays a starring role. The economic landscape is dynamic, with surges in demand and market shifts  occurring more frequently than ever before and the tariff-rich environment is amplifying those unpredictables. For enterprise-level organizations like yours, adapting to these volatile changes swiftly and skillfully can be the difference between success and dwindling revenues. With more than a decade in the business, Pricefx has the expertise and experience to not only step in to help businesses gracefully navigate a turbulent economic world of volatile pricing challenges but remain profitable when the going gets extra tough.

So, first up, let's paint the picture of what is shaping current market volatilities before we analyze how the solutions that pricing software provides can offset the effects of a turbulent business environment.

Tariffs: A Familiar Foe with a Fresh Face

At their heart, this new set of tariffs have not changed much since we last encountered them. They slap extra costs on businesses importing goods or materials—think steel, chemicals, or components. The domino effect is straightforward: higher costs for companies mean higher prices for customers. This is not new; it is the tariff playbook we have seen before. Businesses can try to swallow some of the hit, but eventually, price tags climb.

What sets this round apart? The wild unpredictability. Tariff announcements come fast and furious, only to be tweaked, stalled, or scrapped. In the U.S., the "Liberation Day" plan was arguably chaotically designed as hits on randomly moving targets. In Europe and China, retaliatory tariffs and shifting trade policies add fuel to the fire. The current environment is not a steady climb—it is a rollercoaster, and it is throwing everyone off balance.

Uncertainty: The Silent Profit Killer

Predictability keeps markets humming, from Wall Street to B2B deals. When the ground shifts, fear takes over. Psychologists have names for it— "Intolerance of Uncertaint y" or "Ambiguity Aversion"—but it boils down to this: the less we know, the more we freeze. Businesses halt investments, delay orders, and tighten budgets. Customers haggle harder or pause purchases. It’s a chilling effect, and it’s already slowing things down.

Both sides of the Atlantic – the U.S. and Europe – feel it. Steel manufacturers, battered by energy costs, now face tariffs on imports and uncertainty over trade deals. Will tariffs stick? Escalate? Vanish? No one knows, and that ambiguity stalls decisions. The emotional weight of not knowing what’s next hits buyers and sellers alike, amplifying the economic sting.

Act Fast or Fall Behind – with Pricing Software

When costs surge—tariffs or otherwise—waiting is a trap. Hesitate too long, crunching numbers in spreadsheets, and your margins erode. The savvy move is to act quickly and decisively. Raise prices early and make the increase bold enough to shield your bottom line. Delay, and you are playing catch-up with a shrinking playbook.

Here’s where pricing software shines. It’s not just a tool—it’s a lifeline. By crunching real-time data on costs, demand, and market trends, it calculates the perfect price adjustment before the chaos deepens. Say a 25% tariff hits your raw materials; the tariffs contribute to market unpredictability because they:

• Raise costs unexpectedly (e.g., a sudden tariff on imported components)
• Require quick price adjustments to maintain profitability
• Impact supply chain and sourcing decisions

Pricing software assesses the impact and recommends a hike that keeps you profitable without losing customers. It’s fast, precise, and takes the guesswork out of the equation with:

• Real-time price adjustments: Automatically recalculating prices when market conditions change, such as inflation or tariffs, to maintain margins.
• Predictive analytics:   Forecasting future volatility impacts to facilitate proactive strategy adjustments.
• Scenario modeling:  Modeling the impact of different volatility scenarios, such as tariffs or shortages, on profits before they occur.

While pricing software solutions around increasing a customer’s capabilities in analytics, simulation, and price setting, the various sources of market volatility may require different sets of data on which to base actions.  For example, for distributors, supply chain disruptions might require clean sets of inventory data, while on the other hand, for manufacturers, tariffs could require data insights into the country of origin for the raw materials in their bill of materials.

Retaliatory tariffs also pile pressure on manufacturers already juggling energy woes. Exporters face counter-tariffs, and trade uncertainties loom large. Pricing software offers a lifeline here too by modeling tariff scenarios before they occur—say, a 20% hike on Australian Iron Ore instead of the notional 10% tariff on Down Under goods.

The simulation on the price list hike impacts allows businesses tweak prices, protect margins, and stay nimble. It is a tool to cut through the haze, keeping companies competitive when stability is scarce.

This proactive edge is a game-changer. Instead of scrambling after a tariff hike, you have already run the numbers and prepped your strategy. For long-term planning, it is invaluable—turning volatility into a calculated risk you can manage, not just endure.

Price Hikes: Surcharge or Seamless?

Deciding how to raise prices is tricky. Two paths stand out and for both, clear and early communication with your customers is critical to maintaining customer loyalty:

• Surcharge: Ideal for big, tariff-driven jumps. It is upfront—customers see the tariff’s fingerprints—and you can pledge to drop it if policies shift. Downside? It might feel like a Band-Aid, inviting pushback if it drags on.
• Roll-In: Blend the increase into the base price for simplicity and staying power. Even if tariffs fade, you keep the gain. Pair it with a story—better service, quality upgrades—to ease the sting.

Pricing software helps you pick the winner. It analyzes your customer price segments—and tailors the approach. In Europe, where buyers are stretched thin, a surcharge might feel fairer. In cutthroat U.S. markets, a roll-in could hold stronger.

Whichever way you slice and dice it and whichever method you choose - Data should drive the call, not gut instinct.

Communication: Keep Customers Close

Price increases sting, but transparency softens the blow. Tell customers why—tariffs, supply costs, shortages, quality investments or whatever the reason may be—and do it clearly and early.

Empathy matters; B2B buyers get market shifts, but they hate surprises. Pricing software steps up here too, segmenting your customer base and providing a data-driven approach to crafting messages that hit the mark—reassuring key clients or justifying costs to new ones.

The Takeaway: Move Now, Win Later

Tariffs are messy and so too, are all the kinds of market volatilities that have reared their ugly head since CoVID-19 shook the world. Some have disappeared but many others are not vanishing any time soon. But freezing up is not an option—action is.

Pricing software arms you to strike fast, plan smart, and talk straight. Draft those price increase letters. Pinpoint who is affected, how much, when and go early and tell them kindly but straight.

Thrivers don’t just weather storms—they steer through them. As the saying goes, "Wartime CEOs know sometimes you gotta roll a hard six." With pricing software, you are not gambling—you are stacking the deck. In the U.S., Europe, or beyond, it is your edge in a tariff-tossed world.

To dive deeper into some specifics about protecting your organizations’ margins when challenging times occur, check out this informative article from my Pricefx colleague, Justin Childs:

Meanwhile, Happy Pricing!