The U.S. Supreme Court struck down IEEPA tariffs on February 20, 2026. For companies with hardware components or physical supply chains (payment terminals, fintech infrastructure, IoT-enabled services), the ruling created immediate pricing instability. Landed costs shifted. Importers and their counsel are still working out how replacement duties apply. That uncertainty is itself a cost.
The delay between when your costs change and when your pricing model catches up is where you lose margin. The tariff change is the trigger. The delay is the damage. If you are selling at prices set under the previous tariff regime and your COGS has shifted, you are losing margin on every unit. If you raise prices before you have modeled the exact impact, you risk pricing yourself out of deals while your competitors absorb the hit and gain share.
What a dynamic pricing model does that a static one cannot
A static pricing model assumes your input costs are fixed. A dynamic model sets margin floor trigger points, specific COGS thresholds at which your pricing must change to maintain a target gross margin. When your landed cost moves, the model tells you exactly when and by how much to adjust pricing. The model removes the guesswork. When landed cost hits a defined threshold, the pricing adjustment is already decided.
Three things worth doing this month
Audit your Tier 2 and Tier 3 suppliers to track exactly how the ruling has altered your raw material and component costs. The impact is rarely uniform across your supply chain.
Build the margin floor model. Identify the exact gross margin breaking points that trigger a pricing adjustment, and set those thresholds before the next shipment lands.
If you made tariff payments under the invalidated IEEPA authority, get that list to legal counsel this month. The refund process requires documentation of those payments. Filing windows move faster than expected.
If your landed COGS have shifted more than five points in the last 90 days and your pricing model has not been updated, you are already behind. Scenario planning takes a week. Book a strategy call.