Don't Let Tariffs Tarnish Your Customer Relationships

When the dust settles on tariff upheaval and the effects of stalled orders and product-line cuts hit, what is the real cost to your business? Businesses are working hard to mitigate and offset the effects of tariffs: finding new sources of inputs and materials, trimming product lines, and simplifying operations. They are, as we have recommended, creating "tariff war rooms" to manage short-term disruptions and long-range changes in sourcing and operations.

Too often in a crisis, however, they are so focused upstream and internally that customers become an afterthought. Yet sudden changes in prices and availability can have big—and sometimes profound and long-lasting—effects on customer loyalty and brand equity. Justifiably worried about profitability, companies run the risk of reducing customers to data points on a price elasticity curve. When costs are the only priority, businesses may reduce customer service and support, cheapen products, or reduce investment in