The early verdict is in: President Trump’s “Liberation Day” tariffs sent stocks tumbling last week, with the NASDAQ reaching bear market territory.

China said it was going to retaliate with its own 34% tariffs on American goods. The impact could be swift, sending prices surging.

For instance, the cost to manufacture an iPhone is expected to go up 54% for Apple, according to The Wall Street Journal. The BBC says shoes from companies like Nike and Adidas will likely go up 10-12% in price. Even coffee shops will be affected, with the price of a cup of joe going up as much as $2. No industry is protected from the impact, and the risks are acute. Raising prices could drive away customers, but failing to raise prices will cut into profitability.

Executives at companies big and small are now faced with a series of choices:

  1. Raise prices on U.S. consumers to account for the new taxes.
  2. Eat the cost of tariffs—sacrificing margins or even operating at a loss—and try and wait it out.
  3. Begin the complicated and hard process of building domestic manufacturing capacity.

The right course of action will differ between industries and companies. Here are three examples:

  1. The publishing company with narrow margins that relies on paper imported from Canada may not be able to hold the line on prices for very long.
  2. A carmaker with a lot of inventory already in the U.S. may be able to wait a while before making the same decision.
  3. A shoe company executive decides to start building a new factory.

From coffee chains to cell phones companies, everyone will face a version of these decisions.

There are very different paths for very different companies, and there’s no one size fits all solution, especially when we’re in a period of major uncertainty and volatility. It’s entirely plausible that President Trump may change his mind in a few days and roll back some of the tariffs. Or he won’t. But the CEOs of all these companies face the same challenge: They need to make decisions and lead their teams through this uncertainty, and the playbook remains the same in every case.

Be Prepared

If there are any CEOs out there who weren’t already thinking about tariffs, then they weren’t doing their jobs. As soon as Trump was elected, leadership teams needed to get to work on game plans for how they were going to handle tariffs. This should not have come as a surprise — Trump had been talking about it the entire campaign. This is the equivalent of watching the tape in football; you’ve got to always be on the lookout for what the other team is going to do. No one should be setting up a meeting right now—or even last week—to try and figure out how they’re going to handle tariffs. It should have already been decided.

Stick to Your Plan, but Stay Informed

Whatever that game plan is—wait and see, begin reshoring, raise prices, whatever it is—it’s now time to execute. That doesn’t mean you should go forward blindly, though. Leaders need to always keep on top of the context they’re operating in. If the plan is to wait and see, set a clear timeline for how long you’re going to do that, and then what you’ll do if the tariffs are still in place. If the plan is to start building up U.S. manufacturing capacity, be aware of your costs, and have a clear plan for whether you’ll proceed if the tariffs get rolled back. If you’re going to raise prices, that strategy needs to be worked out ahead of time, and you’ll need to monitor changing conditions and price accordingly.

Make Tough Choices

Tariffs are going to put a lot of focus on controlling costs. A lot of executives are going to be tempted to make cuts across the board. But blanket cuts—whether they’re 5%, 10% or higher—are not the way to go. It’s easy but doesn’t make the company more effective or efficient, which is what really needs to happen. Don’t cut muscle, cut fat.

Instead, leaders need to carefully examine their operations and look for their worst performers. Struggling units, ailing brands, or pieces of the business that aren’t aligned with the core strategy should be the focus of cuts. Imagine a car company: Instead of cutting across the business, focus on the weakest brands. That way, when you come out on the other side, the company will be stronger. You’ll be ahead of competitors that made blanket cuts and lost top talent or growth areas as a result.

Recognize the Opportunity

Great teams and leaders excel when things get hard. This is a real test. The companies that navigate this moment will have a huge advantage over those that struggle. Even though this is going to be hard for your entire time, it’s important to keep focus on the future. Getting this right will pay-off in the long run, which means excuses cannot be tolerated.

The tariffs story is just beginning. It’s going to be a test for the economy, the stock market, politicians, and consumers. The business leaders who were prepared coming into this and who have a clear game plan right now will be the ones who win in the end. The most important thing to remember is to do the hard work the right way.