President Trump’s May 31 announcement that the decision to impose steel and aluminum tariffs to the European Union will move forward brought partial closure to the latest 30 days of uncertainty and tension when the President announced another delay in his decision. The big open question is how well B2B businesses will respond to the effective cost increase they’re now facing.
Manufacturers that depend on these resources have few viable options to absorb rising costs, with the most realistic option being to pass on costs via price. However, mitigating rising costs via a price hike can backfire if not handled thoughtfully.
This Manufacturing Business Technology article, written by Zilliant General Manager of Commercial Excellence Barrett Thompson, outlines the status quo of handling cost increases via price and presents a new strategy for effectively mitigating material cost volatility.