Trump’s 50% Metal Tariffs Are Here: 5 Strategies to Consider
Danilo Zatta, PhD, MBA
Helping companies grow revenues and profits I TopLine, Pricing & Revenue Models Advisor
Dear Friends,
on June 1st, 2025, the U.S. implemented 50% tariffs on key steel and aluminum imports reviving and doubling down on a protectionist trade move. Here 5 routes companies can follow to face this critical situation. See below.
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Trump’s 50% Metal Tariffs Are Here: 5 Strategies to Consider
On June 1st, 2025, the U.S. formally implemented 50% tariffs on key steel and aluminum imports—reviving and doubling down on a protectionist trade stance not seen since the original Section 232 tariffs of 2018. Then, prices for U.S.-made steel surged 25–40% within months. Now? Industry analysts expect even sharper spikes.
This isn’t theoretical. Steel futures jumped 12% the week before the announcement. Aluminum buyers are seeing immediate delivery delays. And procurement heads in auto, construction, and appliance sectors are revisiting every supplier contract signed this year.
What We’ve Seen Before This is not the first time high metal tariffs have rippled across the economy. Let’s rewind:
The pattern is consistent: protectionist measures may benefit the input producer—but usually at the expense of cost stability, manufacturing competitiveness, and consumer price tolerance.
So What Now? If You Price Anything That Uses Steel or Aluminum—Act Fast
Tariff shocks demand pricing agility. Here are five tested strategies to consider:
1. Segment Pricing by Product Exposure
Not all SKUs are created equal. If only certain lines are heavily reliant on tariff-hit metals, consider a tiered pricing adjustment instead of a blanket hike. This helps avoid consumer sticker shock across the board and preserves loyalty in low-impact categories.
Case in Point: In 2018, Whirlpool raised prices only on stainless-steel models. Their entry-level white appliances remained stable—keeping budget-conscious buyers in the fold.
2. Introduce "Tariff Surcharges" Transparently
Rather than quietly folding costs into new pricing, explicitly label surcharges as temporary and linked to tariffs. This builds trust and frames the increase as externally driven.
FedEx and UPS introduced “Fuel Surcharges” during the 2008 oil spike—customers complained, but accepted them as market-driven.
3. Offer Advance Lock-In Pricing for Loyal Accounts
If you're in B2B or high-value D2C, give customers a 30–60 day window to lock in current prices. This drives near-term revenue and strengthens account relationships.
Atlassian used this approach during its 2020 Server retirement—locking in three-year pricing helped it avoid churn during a major structural change.
4. Bundle Added Value with Price Hikes
If prices must rise, sweeten the deal. Offer bonus services (extended warranties, free delivery, loyalty points) to cushion perceived inflation.
Samsung bundled longer warranties and setup support with its 2023 appliance pricing hikes, softening pushback.
5. Model Worst-Case Scenarios Now—Not Later
Assume volatility in input pricing through Q4. Build pricing models with 2–3 escalation tiers. Identify which products you can temporarily pause, substitute, or redesign to reduce metal usage.
Ford reduced chrome trim and switched to alternative alloys during past tariff cycles to maintain margin and output.
Final Thought: Tariffs Are a Margin Stress Test
Much like a sudden AWS price hike or a surprise foreign exchange swing, these tariffs are a test of how fast your business can react, communicate, and adapt pricing without losing customer trust.
Your finance, procurement, and product teams should be in daily sync. This isn’t just a trade headline—it’s a new cost structure. And your competitors are already reacting.
Let us know: Have you weathered a tariff-driven price storm before? What worked—and what backfired? Hit “reply” to share your story, and we might feature it next issue.
Interested in learning more about pricing? You will find insights in the books The Pricing Model Revolution, The 10 Rules of Highly Effective Pricing and Pricing Decoded.
‘There are many books on pricing. The Pricing Model Revolution is the best read for managers wanting a review of several innovative pricing methods’. Philip Kotler, S. C. Johnson Distinguished Professor of International Marketing, Kellogg School of Management, Northwestern University
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You are most welcome to share your views, feedbacks and own pricing experiences. Thanks a lot for your interest and support!