How Should Companies Talk About Tariff-Driven Price Hikes?‌‌

What’s the best way for a company to talk about a price increase caused by something outside their control?‌

When prices have to go up because of something like a government tariff or a global supply issue, it’s important that customers understand why. People are much more accepting of price changes when they believe the reason is fair and unavoidable.‌

So instead of just saying, “Our prices are increasing,” it helps to explain the reason in plain terms, like: “Due to new government tariffs on imported materials, our costs have risen significantly. We’ve delayed adjusting our prices for as long as possible, but this change is necessary to continue delivering quality.”‌

That kind of message shows that the company isn’t trying to make extra profit off the situation—it’s simply reacting to external pressures. It also signals that the company has been trying to shield customers from those pressures as much as it can. Ideally, companies should point out when the tariff or external force is actually larger than the price increase they are passing along. ‌

Should companies bring up the price increase directly—or just quietly raise prices? And does how you explain it matter?‌

It depends on how noticeable the change is. If customers are likely to see it—or if competitors are talking about it—then it’s often better to explain it upfront. That builds trust. No one likes feeling hoodwinked.‌

How the increase is explained makes a big difference. Here are some tips:‌

• Add context. If you’ve held prices steady for a long time, say so. Example: “This is our first price change in three years.”
• Pair it with something positive. Even small improvements to the product or service can soften the news. Example: “We’re also improving shipping times and customer support access.”
• Break it into smaller steps if possible. Compared to a big jump, small gradual changes tend to feel less painful.
• Consider relative value. You can highlight what customers still get for the price, or how the product remains a good value relative to alternatives. This taps into reference points—the mental comparisons people make. For example: “While our prices are increasing slightly, they remain below the industry average for this type of product, and our quality and service continue to lead the category.”
• Focus on customer value across touchpoints. Executives often have to communicate price increases to a range of stakeholders, and it’s easy to forget that in today’s digital age, the same statements presented to investors will also be seen by customers. Avoid language that may sound clinical or overly financial. Focus instead on what the customer values: “This helps us continue to offer fast shipping and great customer support.” This shifts attention away from the loss and toward what’s being preserved, placating both investors and customers.

What if the government—or even the president—objects to companies blaming tariffs? Should companies still say that’s the cause?‌

This is a tricky situation. On one hand, you want to be honest. On the other, you don’t want to get dragged into politics or risk public criticism.‌

One approach is to still explain that outside factors are driving the cost increase—just without getting too specific. Instead of saying “tariffs,” you might say: “Recent changes in trade policies have increased the cost of key materials we use.” Or alternatively: “Global shifts in trade and supply costs have affected the prices of key materials we use. We’ve delayed passing these costs on to customers, but we now need to make a change to maintain product quality.”‌

That’s accurate, but more neutral. It keeps the explanation factual and avoids calling out any one political figure or decision. Customers still understand that the company isn’t raising prices just to boost profits—but the message avoids taking a side or escalating the issue.‌

In short, the goal is to be transparent and fair without getting caught in the crossfire of political debate.‌