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CTL: How Will You Handle Tariffs

CTL: How Will You Handle Tariffs

Eliza Helweg-Larsen

chief creative officer, co-founder andromeda simulations international

Published Date

May 26, 2025

Tariff Trade-Off Simulator

Objective: This exercise helps you explore how tariff-related cost increases affect both your customer relationships and internal financial expectations. You'll simulate pricing decisions, observe margin impacts, and evaluate likely responses from customers and management—giving you insight into the real-world trade-offs involved in managing tariffs.

In Part 1 of our series on the impact of tariffs, we looked at how tariffs on raw materials ripple through supply chains and pricing. Now it’s your turn to ..

Explore the Tariff Trade-offs.

Use the interactive Tariff Response Simulator below to test what happens when tariffs hit your costs. Will you pass them on? Absorb them? Or try something in between?

Different customer types react differently. So do different management styles. Try adjusting the numbers for different management and customer types below and see what reaction you will get on both sides.

Tariff Calculator

Customer Profile:
PennyPinch Inc. (Price-First)
Balanced Buyers (Value-Conscious)
Trusted Partners (Relationship-Oriented)

The tariff is $0.00. How much of that do you want to pass through to the customer?

0%

Management Style:
Cost Watchers (CFO Lens)
Top-Line Focus (Revenue Rush)
Strategic Horizon (Long-Game)

Tariff Cost: $0.00

Gross Margin: 0.00%

Final Thought

There’s no single right answer. Every pricing move affects your position with customers and with your own leadership team. This exercise doesn’t prescribe a path. It shows you the tension. What trade offs will you make in your business to offset the impact of tariffs?

Continue the Learning

This post is part of our Continue the Learning series, where we share tools, perspectives, and real-world examples to help you build stronger business acumen.

See all posts in the Continue the Learning series →