By Matt Scholes
TDCX Global Client Solutions Director

Picture this: The same lipstick, headphones, or fitness tracker your customer bought last month now comes with a customs fee and a three-day delay. The product hasn’t changed, but the experience has. Do you absorb the hit and slash your margins, or pass it to customers and risk their loyalty? It’s a dilemma that brand leaders across the globe are now facing — and CX teams are feeling the pressure firsthand. In April, a tariff announcement sent shockwaves through the sector, with one leading e-commerce platform’s stock plunging 18% in a single day. Tariffs have swiftly moved from back-office nuisance to C-suite crisis, and the effectiveness of how brands respond will ultimately be judged by customer reactions.

When trade policies shift overnight, they can drive up product costs by 5% – 10%. Major retailers caution that blunt price hikes to offset tariffs may do more harm than good — triggering not just sticker shock, but also long-term brand erosion as consumers question value, transparency, and fairness. Yet most companies can’t just absorb the added costs indefinitely. Even retail giants admit they cannot shoulder the entire burden. As Walmart’s CEO candidly noted, they “aren’t able to absorb all the pressure”. In practice, that means some of the increase will inevitably reach consumers.

Behind the scenes, businesses are frantically negotiating with suppliers over who will swallow how much of the tariff pain. In some cases, companies have even pondered dropping certain products if tariffs make them unsustainably expensive. One way or another, the effect of the turbulence trickles down to the customer — be it through higher price tags, longer waits for backordered items, or an empty shelf where a favorite product used to be. Consumers aren’t blind to these shifts, and many are already bracing for rising prices and slimmer choices. Their patience is thin, and if brands fumble about their response, customer trust will quickly erode.

Between tariffs and trust

In this climate, customer trust is as precious as gold. If a company must raise prices, how they manage it makes all the difference. The best brands are transparent and empathetic — proactively explaining price changes so customers aren’t blindsided, and framing the move as necessary to continue delivering quality despite external pressures. Likewise, if shipping is delayed or an item is out of stock due to tariff-induced supply chain snarls, a little honesty goes a long way. Notifying shoppers about a delay before they hit the “buy” button (perhaps with a small gesture such as a discount coupon to acknowledge the inconvenience) can turn a potential frustration into a loyalty-building moment. Demonstrating a commitment to customers, even amid external pressures, is what sets leading brands apart.

Innovating under pressure

Forward-thinking business leaders are turning this crisis into a stress test for innovation. One immediate effect of tariff hikes has been a spike in customer inquiries about late deliveries, price changes, and product availability. Rather than being overwhelmed, savvy companies are beefing up their customer experience strategy. They’re equipping customer service teams with real-time stock and supply chain information so they can confidently answer the tough questions, like “Where’s my order?” or “Why did the price go up?”. At the same time, businesses are rolling out tech solutions to keep customers informed instantly. For instance, real-time alerts on shipping status and inventory levels can prevent that dreaded scenario where a customer buys an item online only to learn later it’s backorder. In short, companies are doubling down on operational agility and communication to preserve trust.

When the consumers’ wallets feel the pinch, loyalty is truly up for grabs. Shoppers will stick with companies that not only maintain their quality and service, but also make customers feel valued in spite of rising prices. That’s why personalization and extra value have taken on new urgency. Many brands are leveraging data to tailor offers and rewards, effectively saying, “If you have to pay a bit more, we’ll give you more in return.” Whether it’s exclusive perks for members, targeted discounts for long-time customers, or added services bundled into a purchase, such gestures can keep customers engaged when competitors might be cutting corners. The brands that would succeed in this turbulent time are often those that find creative ways to show appreciation, turning a challenging situation into an opportunity to deepen customer loyalty.

Turning turbulence into opportunity

For all the turmoil that tariffs unleash, they also present a chance for companies to stand out. Brands that uphold a stellar customer experience amid the chaos can not only emerge with loyal customers, but brand advocates. These brand advocates will remember how they were treated when times were tough and become strong proponents of the brand. When a customer sees that a company is willing to stand by them — perhaps by absorbing some costs, finding alternatives to avoid disruption, or simply communicating diligently — they won’t forget it. Economic storms come and go, but the trust forged during adversity can last for years.

Crucially, this is a moment for CX leaders to shine internally as well. By framing customer experience initiatives as core to the company’s resilience, they ensure CX remains a strategic priority rather than a cost-cutting target. In an age of tariff turbulence, business urgency and customer-centricity must go hand in hand. The companies investing now in empathetic service, smart technology, and creative loyalty strategies will be the ones telling success stories when the dust settles. They’ll prove that not only can you survive the storm with your customer relationships intact — you can strengthen them along the way.

Ready to dive deeper? Learn how global e-commerce brands are tackling tariff turbulence head-on in our new whitepaper, “Customer Experience in an Age of Tariff Turbulence.” It’s packed with strategic insights on building CX resilience amid trade uncertainty. Explore the full white paper to equip your brand with the ideas and urgency needed to thrive when tariffs shake the ground beneath your feet.