Applying the Rule of 7 to Tariff Negotiations
This year, tariffs have reshaped the cost structures of many manufacturing supply chains.
Too often, I’ve seen buyers accept supplier pass-throughs of tariff costs without pushback—or, just as problematic, they made a single attempt to negotiate an offset and gave up when the supplier resisted.
The result? Margins eroded, competitiveness weakened, and suppliers grew comfortable passing costs downstream.
In negotiation training, we talk about the Rule of 7: the principle that people often need to hear a message at least seven times before it resonates and leads to action.
While it’s borrowed from marketing, this rule applies directly to tariff negotiations.
1. Don’t Stop After One Attempt
If you asked once and didn’t get traction, it doesn’t mean the negotiation is over. Conditions change. Suppliers recalibrate their strategies, competitors adjust, and management reconsiders priorities.
Going back multiple times with a consistent message reinforces that tariffs are not simply a buyer’s problem—they are a shared challenge.
2. Use Different Angles Each Time
Repetition doesn’t mean repeating the same words.
Each of the seven “touches” should bring a new dimension:- Market Competitiveness: Show how unadjusted pass-throughs make the supplier’s product less competitive compared to global alternatives.
- Shared Responsibility: Frame tariffs as an externality neither party controls—therefore, both parties must share the burden.
- Cost Offsets: Explore ways to neutralize tariffs through cost reductions in other parts of the supplier’s operations.
- Volume Leverage: Revisit the conversation in the context of larger or longer-term commitments.
- Benchmarking: Bring in external data points on how other suppliers are handling tariff impacts.
- Risk Mitigation: Stress that inflexible pricing in a volatile environment puts both buyer and supplier at risk.
- Future Business: Tie tariff mitigation to opportunities for future awards and growth.
3. Suppliers Have a Stake in Offsetting Tariffs
It is in the seller’s best interest to find ways to reduce or offset tariff impacts. A supplier who insists on full pass-through becomes less competitive in the marketplace.
Buyers will eventually move to alternatives—whether shifting sourcing, redesigning, or turning to domestic suppliers.
By sharing the burden and helping their customers stay competitive, suppliers preserve and grow their own long-term business.
4. Tariff Negotiations Are Ongoing
Even if your tariff negotiations seemed “finished,” revisit them. Tariffs aren’t static; the impacts ripple through costs, demand, and capacity.
The Rule of 7 reminds us that persistence, delivered with new insights each time, is far more likely to yield results than a single conversation.
Final Thought
I’ve been through many industry disruptions—tariffs, steel shortages, currency swings, and energy spikes.
One thing I’ve learned is that the initial shock fades quickly, but the long-term cost implications linger for years.
Buyers who persist—who return to the table multiple times with facts, creativity, and a clear message—are the ones who protect their companies’ margins and strengthen supplier relationships.
Don’t give up after the first “no.”
Apply the Rule of 7 to tariff negotiations and keep going back. Your bottom line depends on it.
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