There’s a comfortable assumption inside a lot of software companies that tariffs are somebody else’s problem. The core of the confusion is that “software” almost never travels as pure software anymore. The moment a physical good is involved, classification is back on the table, and with it the whole tariff apparatus you thought didn’t apply. When software and hardware ship together, how much of the transaction value is the tangible good versus the license? When software is embedded in a device, the device usually classifies as the device, and the software rides along inside that code.