
What happens when your product suddenly becomes 25% more expensive overnight?
That’s the reality facing Canadian and Mexican companies exporting to the U.S. right now. With the possibility of new U.S. tariffs looming, businesses are scrambling to decide their next move.
This isn’t just a pricing issue—it’s a positioning problem.
If your product suddenly costs more, your competitive landscape changes. Customers may now consider alternatives they previously dismissed, and your differentiated value may need to shift.
And this isn’t just a Canada/Mexico/U.S. trade issue. It’s a real-world example of when businesses must re-evaluate their positioning—a lesson relevant to any company facing economic shifts, regulatory changes, or new competition.
When Do You Need to Re-Evaluate Positioning?
Positioning isn’t something you set and forget. As positioning guru April Dunford suggests, revisiting every six months or when a major shift occurs is essential.
What kind of shift?
Competitive alternatives change: If new options become viable due to a price increase (like tariffs) or market changes, you may need to adjust how you differentiate.
Your unique features and capabilities evolve: If your product has changed (or your competitors’ have), your positioning might need a refresh.
Your differentiated value no longer stands out: If the reason customers chose you before is harder to justify (e.g., you were the best value, but now you’re expensive), you need a new angle.
Your best-fit customers shift: If those who used to love your product can’t justify the cost anymore, who does your solution still make sense for?
Your market category no longer fits: If the space you were competing in no longer highlights your strengths, you may need to reposition.
Regulatory changes—like tariffs—are a perfect example of a trigger event that can impact all of the above.
What Happens If You Ignore It?
If you don’t adjust your positioning when a major shift happens, you risk:
Confused customers: If you don’t control the narrative surrounding why your price changed, customers will assume the worst. They may not immediately understand the factors driving the increase, and without clear communication, they might jump to conclusions that hurt trust and retention.
Lost deals: If your best-fit customers now have other (cheaper) options and you don’t reframe your value, you’ll struggle to close.
Longer sales cycles: If customers need more convincing, sales teams will be stuck defending pricing instead of selling value.
Customer churn: If existing customers don’t see why you’re still the right choice, they’ll start looking elsewhere.
How Do You Know If a Change Is Needed?
Let’s assume there’s no major external factor, like tariffs, forcing a shift. How do you know when it’s time to revisit your positioning? Here are a few red flags to watch for:
Sales is struggling: If deals are harder to close or customers start questioning your value, something is off.
Your best-fit customers aren’t buying: If the ones who used to love you suddenly hesitate, you need to rethink your positioning (which impacts your messaging).
Competitors are gaining ground: You can't afford to sit still if they’re using market shifts to position themselves better.
Customer conversations feel different: If your team is fielding more objections about price, alternatives, or value, your positioning may need an update.
How to Adjust (Without Chaos Ensuring)
Repositioning doesn’t mean tearing everything down. It means making sure everyone—especially your customer-facing teams—knows how to respond.
✔️ Align internally: Get marketing, sales, product, and customer success on the same page. If one team says one thing and another says something else, you’ve got a problem. In small and medium-sized companies, the CEO needs to be involved.
✔️ Update your messaging: If tariffs make you more expensive, you need to justify why you’re still worth it. Maybe it’s durability, supply chain reliability, or something your competitors don’t offer.
✔️ Equip customer-facing teams with a clear narrative: Sales and support should have answers before customers ask. Nobody should be scrambling for a response when the “Why did your price go up?” email lands in their inbox.
✔️ Be proactive with customers: Open conversations with buyers before they start questioning. Explain the situation, reinforce your value, and clarify who is responsible for covering tariff costs (based on Incoterms) so there are no surprises.
✔️ Revisit positioning every six months: Even if there’s no immediate crisis, markets shift. Your positioning should, too. It doesn’t mean you need to change it that often, but you should be re-evaluating that often.
Final Thought: Stay Ahead of the Curve
If tariffs do hit, Canadian and Mexican companies will have some tough decisions. But even if you’re not in the crosshairs of trade policy, something will change in your market sooner or later. It could be external factors like tariffs, competitive moves, or your product or service has evolved.
The companies that win are the ones that adapt before they’re forced to.
So, when was the last time you revisited your positioning? If the answer is “I don’t remember,” it’s time.