Pricing in a Trade War: Lessons from Hyperinflation and Currency Volatility

When trade becomes a battleground and tariffs are imposed not as policy tools but as retaliatory weapons, companies are forced to operate in a new reality—one marked by volatility, uncertainty, and constant recalibration. In this environment, pricing isn’t just a lever for growth or profitability. It becomes a matter of commercial survival.

For those who have worked in economies where hyperinflation or rapid currency devaluation is the norm, this scenario will feel familiar. In those markets, the idea of setting an annual price list—or even a quarterly one—is unthinkable. Prices must be monitored, reviewed, and adapted weekly or even daily. Not because of poor planning or strategy, but because the market changes that fast. When the value of currencies can fall 10% in a day, you don’t wait to respond. You adapt in real time.

That’s exactly the mindset pricing teams now need to adopt in the face of a multi-country trade war.

Why Pricing Must Adapt from Stability to Volatility—Overnight

Most pricing organizations are built for stability. Prices are reviewed quarterly. Annual contracts are set and largely forgotten until the next cycle. Cost inputs are relatively predictable, and so is customer demand.

But when a trade war erupts, especially one involving multiple countries with retaliatory tariffs, shifting alliances, and politicized supply chains, that foundation disappears. A raw material tariff can spike landed costs overnight. An export restriction can invalidate a pricing model for an entire region. A currency shift between trade partners can turn profitable deals into loss-making ones in days.

In this context, pricing cannot afford to remain static. Companies that have survived hyperinflation didn’t do so by waiting for clarity—they acted decisively and continuously. And that’s what pricing teams must do now.

Dynamic Pricing Is Now Business-as-Usual: What It Takes to Adapt

In high-inflation economies, companies evolve their systems and workflows to enable real-time pricing adjustments. They build processes for weekly reviews. They implement approval workflows that prioritize speed over bureaucracy. Sales teams are coached to communicate change frequently and credibly to customers. Most importantly, they move away from the illusion of “setting and forgetting” prices.

This is the model that pricing organizations must now emulate.

In a multi-country trade war, pricing needs to become a dynamic function. This includes:

• Daily or weekly cost impact monitoring
• Scenario planning to model likely retaliatory measures
• Rapid updates to list prices, discounts, and customer-specific terms
• Margin safeguards that flex by customer segment and product category
• Governance models that allow commercial responsiveness without chaos

Without this kind of infrastructure, companies are left either overexposed or constantly reacting. Neither is sustainable.

From Support to Stabilizer: The Evolving Role of Pricing

In most businesses, pricing is still perceived as a support function—important, but not strategic. But in trade war conditions, pricing sits at the center of the storm. And just like in inflationary markets, it can become the stabilizing force the business needs.

To play that role, pricing teams must break out of silos. They need to work in lockstep with procurement to track cost shocks. They need to partner with finance to model profitability scenarios. And they must coordinate with sales to ensure that commercial decisions reflect both internal realities and external customer sensitivities.

In inflationary markets, pricing becomes the central control function that keeps the business aligned and anchored. The same is now required in global organizations navigating tariff-driven disruptions.

What Not to Do: Avoid These Common Pricing Mistakes in Volatile Markets

Companies unfamiliar with volatility often fall into familiar traps when facing economic shocks:

• Delaying price changes in hope that conditions stabilize
• Making across-the-board adjustments without regard for customer elasticity or strategic value
• Relying on slow approval processes that frustrate field teams and lead to ad hoc decisions
• Hiding from customers instead of communicating clearly and frequently

In contrast, companies that have lived through currency crises or hyperinflation understand that adaptability must be operationalized. They know that customer trust comes not from price consistency, but from pricing integrity—clear logic, fast action, and transparent communication.

Navigating Volatile Markets with Confidence and Experience

Many pricing teams in developed economies haven’t operated under these conditions before. But the playbook exists. It comes from Argentina, Turkey, Nigeria, and other markets where pricing is a daily decision, not a quarterly event.

The key is to lead as if you’ve seen this before. Step into the uncertainty with confidence, not caution. Build systems that enable speed. Take ownership of commercial response planning. Make pricing the central node that connects supply chain realities with market-facing decisions.

This Is a Leadership Moment for Pricing Professionals

Trade wars don’t just reshape global trade—they reveal internal weaknesses. They expose outdated pricing processes, lack of cost visibility, and overly rigid commercial policies. But they also create opportunities for pricing professionals to redefine their role.

Now is the time to earn a seat at the table—not as price setters, but as business leaders who bring coherence to commercial chaos.

Because in moments like these, the organizations that move the fastest, communicate the clearest, and protect margin most effectively are the ones where pricing isn’t reactive—it’s leading from the front.

Struggling with pricing in a volatile market? Contact us today to learn how you can stay agile and protect your margins.

Stephan Liozu, Ph.D., Chief Value Officer at Zilliant, is a global expert in pricing, innovation, and value management with 20+ years of experience. He has authored 15+ books, including Pricing—The New CEO Imperative (2021) and Value-Based Pricing (2024).