March 28, 2025

FIR #457: Communicating Tariff Impacts

21 minutes

There are few business leaders who won’t need to explain to various stakeholders the impacts of U.S. President Donald Trump’s tariffs and the trade war it will initiate. How they position those impacts could determine whether they find their organizations in the Administration’s crosshairs. Communicators should counsel leaders on how to address the impacts. Neville and Shel share their thoughts in this short midweek FIR episode.

Links from this episode:

Trade associations: PR’s secret weapon during tariff battle

More pocketbook, less politics: How C-suites should talk about tariffs

Trump’s tariffs – how should the EU react?

Adapting Communication Strategies During Trump 2.0

The next monthly, long-form episode of FIR will drop on Monday, April 28.

We host a Communicators Zoom Chat most Thursdays at 1 p.m. ET. To obtain the credentials needed to participate, contact Shel or Neville directly, request them in our Facebook group, or email [email protected].

Special thanks to Jay Moonah for the opening and closing music.

You can find the stories from which Shel’s FIR content is selected at Shel’s Link Blog. Shel has started a metaverse-focused Flipboard magazine. You can catch up with both co-hosts on Neville’s blog and Shel’s blog.

Disclaimer: The opinions expressed in this podcast are Shel’s and Neville’s and do not reflect the views of their employers and/or clients.

Raw Transcript:

Shel Holtz: Hi everybody, and welcome to episode number 457 of four immediate release. I’m Shell Holtz.

Neville Hobson: And I’m Neville. Hobson. Today’s episode, we’re gonna have a talk about Trump’s terrace. This is a hot topic. You cannot avoid this if you turn on the TV news or pick up a newspaper ’cause this is a hot topic, , everywhere you go, anywhere in the world.

So we’re gonna talk about this from a communicator’s perspective. Now, let me set the scene. Um, the second Trump administration, which is where we’re at Trump 2.0, has begun introducing aggressive tariff policies. These acts are already reshaping the global trade landscape. Trump has proposed across the board import tariffs including a 10% levy on all foreign goods and potential increases of 60% and more on Chinese and other imports if implemented, these acts would trigger broad economic consequences, including a high probability of retaliatory tariffs on American goods and [00:01:00] services by affected nations.

In practice, this means five things. First, rising costs for consumers and businesses. Then disruption of global supply chains, retaliation from other countries, as I mentioned, investor uncertainty and market volatility, and to geopolitical tensions and strategic risks. This isn’t only a US issue, it’s a global risk that requires proactive communication planning, especially for multinationals and export heavy sectors in North America, Europe, Asia, Africa, and Latin America.

So I mentioned we’re looking at this from a communicator’s perspective. So the question is, what must communicators do in this situation? Wherever you are, whatever you work in, particularly if it’s a large enterprise and it’s multinational, these are likely to be issues that concern your business, concern you as a communicator and the people in your organization who need to do the communicating much of the time.

So to help companies navigate this volatile [00:02:00] environment, communicators have a central role to play strategic messaging, stakeholder, stakeholder reassurance, and political risk mitigation will be critical. Drawing on insights from a wide range of sources that I research, including in particular, I’m quoting from PR, daily Campaign, Asia.

And, , a really interesting report from Fleischman Hillard in January. There are a number of key actions for communicators to guide their companies through an imminently volatile trade landscape. That means four key actions. First work with professional associations for coordinated advocacy. This way you can help present unified positions on tariffs.

, professional associations can effectively lobby policy makers and frame public messaging without exposing individual companies to political backlash. Second, help the C-suite focus on economic impacts, not politics. Executives should focus on how tariffs impact the business prices, jobs, supply chains, [00:03:00] without drifting into political commentary.

This approach keeps the company above the political fray while remaining transparent and informative. Third, build agile response strategies for today’s fast moving media Monitor emerging platforms where trade issues trend from TikTok to Reddit. Be prepared to respond in real time misinformation spreads fast in politically charged conversations.

And fourth, localized and aligned messaging tailored for each market and audience. Translate global strategies into locally resonant narratives, especially for markets where trade tensions may spark consumer or political reaction. So before we get into any kind of detail on this, let’s talk about that overall picture.

So shell, how do you see this shift? Affecting the way companies approach public communication, especially when the policies originate in the us, but have global consequences. You are in the us how do you see it all?

Shel Holtz: Well, I think it’s a crisis communication scenario for most organizations. , the [00:04:00] threat is consistent with the types of activities that lead us to.

In crisis plan or crisis scenario, and I think those principles apply.

Recommendation to look to associations is a good one. , what we’re trying to do is protect our reputations while still advocating for the organization. , and I really think there’s two ways to look at this. One is, , as you mentioned, professional associations. Professional associations are IAB, C and PRSA.

For example, they represent people in professions. , then there are trade associations which represent industries. And I think there’s tremendous value in those trade associations. , I remember when I worked at Allergan, a pharmaceutical company, we were a member of the American Pharmaceutical Association.

, it was a lobbying organization, did other things, but it’s primarily a lobbying organization so it could go to Congress and. Make a lot of noise [00:05:00] without painting a target on the backs of its members. , you know, a legislator wouldn’t know which member had supported a position that the trade association was taking and, and which opposed it.

, so there’s, there’s a lot of, , value to doing that. But I also think. A couple of, , other things that weren’t mentioned in these reports. One is, you know, you have to define what it is you want the reputation of your organization to be if you haven’t already done that. And if you have done that, you need to figure out how that aligns with what’s going on with these tariffs.

And it’s not just tariffs. I mean, let, let, let’s clarify. It’s also, I mean, if you look at. The activities here on DEI that’s having global implications because you have global companies, you have American based companies with European affiliates and Asian affiliates and Latin American affiliates and so on.

You have internationally based companies that have a a, a large presence in the us. Look at Unilever. [00:06:00] As an example. , and what are the European parts of the organizations and, and the other non US parts of these organizations going to do around DEI? Are they going to. Tailor their policies outside the US to accommodate what the Trump administration wants done in the us.

, if they don’t, will they, um, provoke the ire of, of the administration. So, , I think this, this goes beyond tariffs. So identify, , how all of this affects your reputation and then. Counsel your leaders on how to talk about this. So, you know, rather than talking about the politics, for example, talk about the economic impacts of these things.

. Might keep you out of the crosshairs of, of the administration as, as they pursue these policies within, um, individual organizations. , so yeah, and, and, and one other thing to keep in [00:07:00] mind here is that. Trump is fairly mercurial. , he announces a tariff and then three days later he says, well, we’ve had talks and I’m not going to implement the tariff.

And then three days later, well, yes I am. And well, it’s gonna be a different, it’s gonna be higher, it’s gonna be lower. , what all this means is that there is tremendous uncertainty. Out there. , and I think uncertainty is probably the key thing that’s happening as a result of all of this. So we need to be communicating with our stakeholders and especially our employees on a regular basis to let them know, look, this is where things are today.

It may change tomorrow. Your leadership team is nimble and watching all of this, and we will respond appropriately, , based on. The latest announcement out of, out of Washington. But we also have to acknowledge the fact that we know that this could change in 24 hours or less. , so I think addressing uncertainty is part of crisis [00:08:00] communication, and one of the reasons I think crisis is, is.

The underlying approach to take to all this.

Neville Hobson: Yeah. It’s interesting, I think because you mentioned this goes beyond tariffs. I don’t disagree with that at all yet. , ta the tariff issue, , and , you just outlined it, is full of uncertainty. Mm-hmm. Whereas things like, , restrictions on DEI that’s certain that has happened already, so they’re not that.

Unlikely to be a backtrack, so you kind of know what you need to do about that. This is very different. , and I think the uncertainty issue is, , something that, , spooks everyone, , particularly, , stock markets, , particularly the, those external groups that have a big influence on your share price.

If you’re a listed company listed on your market position, , your competitive position, you name it. , and so, , the, the idea of, , helping, , the, , C-suite, particularly senior leaders in the organization on framing, what is the messages that you’re gonna con be consistently communicating? [00:09:00] And you mentioned, , certainly yeah, stick to the economics of it all.

Don’t get into the poli political era, , area. , even though it, , it might be difficult to remain politics free depending on the business you are in and where you’re operating, but, . There are clearly opportunities, even in the time of uncertainty, where you need to be able to, , explain to your various stakeholder groups how tariffs, whether they’re implemented, particularly if they’re, if they’re implemented, how they will impact your business.

, and that’s a valid. , top, , valid focus. So on prices, jobs, , supply chains, all of that, as I mentioned earlier, without going into the political area. , and linked to that is used language that resonates with those everyday concerns. , rising costs, impact on choice or supply delays, rather than the abstract jargon that emanates, , outta the, the political area when they’re communicating stuff about tariffs.

So we hear about, 10% on this, 60% on that, [00:10:00] even 200% on, , wines from France, for instance, if they don’t obey Trump’s whims, , what does that actually mean? , it doesn’t necessarily mean that your price in your bottle of wines suddenly getting up by 200%, so you need to be able to help people. Put that in the right context for them.

, and that applies to employees particularly, I think. So you’ve got that. , I think also, , , saying to employees for instance, , don’t worry, we’re on the case. We’re taking care of all this. You need to explain exactly what you’re doing. In that case, I would argue. So you need to, , assemble.

You know the right people to respond. That’s not just a communicator. You need legal, government, affairs, whoever, , who are ready. And this is where the role of communicators comes in to craft , and prepare timely responses to tariff announcements or inquiries from the public. So that’s very reactive and there are undoubtedly things you can do on assumptions that would stand you in good stead if you just see which way the wind seems to blowing.

This is where Trump makes it very difficult because of the fact that he’s changing his mind all the [00:11:00] time. He has said on multiple occasions that he sees, , this whole thing of tariffs as a negotiating tactic, but then as you pointed out, suddenly he changed his mind. I mean, this makes it very, very difficult.

I think the. The picture’s not too different. If you are, , , a business in another country outside the United States, and you work for a, not a US based company, you are working for , a big, , company in your particular country that sells to various countries around the world, including to the us, , your dynamic approach might be different, but I, I think that the issues are not.

That dissimilar in terms of how you need to explain this to your various stakeholder groups, what’s going on? So you could argue that much of that is not really the role of communicators in the, in, in there is so much uncertainty they can, you know, it’s not really affecting you, I would argue. Yes, it is.

You need to have that 360 degree view no matter what. So, you know, in a sense , with, with some confidence, what not to [00:12:00] include in your communication is not really relevant to particular situation. Isn’t, , gonna come any easier as we get into this now? Because what we’ve been seeing, I believe is, is kind of like the, just the first shots in the battle.

, where now we’ve got an events, . And I find this extraordinary, I don’t know how you see this, but the, the vice president and his wife, , saying, we’re gonna go to visit Greenland in on Friday. And the Greenlanders and the Danes are saying, you’re not welcome. And they say, well, we’re still gonna go.

So they’re gonna go no matter what. So what happens if they’re a fused entry? I mean, what impact is , that I’m not suggesting that that should be in all your communication, but you need to be aware of potential implications for something like do something crazy like invade Greenland.

I don’t see how that’s possible. , but we are in this, , very strange situation where. Truly anything is possible. , I was thinking about something I saw , on TV news at lunchtime today about the stock markets. , , all the stock markets are up [00:13:00] big time. , the major ones around the world are all up.

, what does that tell us about, , realities of, like, the cynical view from me certainly is that, well, as we know from history in wartime there certain. Types of business do extremely well, , , and some people benefit from that. We’re seeing something similar now, it seems to me. Communicators, , have an opportunity here to, , really demonstrate leadership in, , in advising the C-suite in particular, but not just the C-suite, , other parts of the business too, and external audiences, , with clarity in uncertain environment as far as they know, and they can earn some respect for doing that, , , being proactive as well, and I’m sure that’s happening in many companies.

So what else is there shell, do you think that, , communicators could do that we’ve not touched on? Oh,

Shel Holtz: quite, quite a bit. I do wanna say that, yeah, I, I haven’t looked at the markets today, but, , , they took quite a fall over a period of a couple of weeks. So this could be a correction too. Yeah.

Probably rather than a response to anything that’s making them feel [00:14:00] positive, but. , I also wanna come back to the DEI issue just for a second, because there is tremendous uncertainty around that. Not for the same reason, not because they’re changing their minds, but because the executive order and the, , the regulations that have been produced within the administration are ridiculously vague, , and legal teams and HR teams are having a lot of difficulty.

Interpreting them and deciding exactly what they need to do in order to not run afoul of them. , so there’s uncertainty there too. But in, in terms of, you know, what else communicators can do, the first thing we can do is put together response teams, , assemble the teams with, , the various.

Perspectives and expertise, both internal and some consultants. , where I work, we, we have lobbyists in, in each of the regions where we operate that are familiar with the governments, , of those regions. , and, , would probably wanna bring them into this, , so that they are, , on deck and ready, , when something is announced to craft a [00:15:00] response, , to make recommendations to assess the impact.

, and then, , those rapid response protocols for those teams to use need to be developed too. What are the guidelines for really fast responses to unexpected developments? , you know, and have to incorporate the research we’ve already done, , and the scenario planning that we’ve done around various potential issues that could emerge.

This also requires that we. Expand our monitoring. There may be emerging, , networks, , and platforms, , that people are using to, , discuss this and share information. , identify those and incorporate them into your media monitoring mix might even pay off, , your leaders are very busy people.

They’re running the organization. Yes, they’re getting the news and they have, . Groups that they’re a part of that share the news, but it’s still sort of cherry picked. It might be worthwhile if you could do this. , and here’s an opportunity to put, , generative AI to work, , to do a daily summary of where things are at on, .

[00:16:00] These issues, , what are the latest executive orders? , what are the latest changes that the administration has made to previously announced actions? , what are the reactions from various countries and other stakeholders? What are the impacts that are being reported in various industries, especially your own?

, and just a daily bullet point summary that says, this is where we’re at to help guide them. In their decision making. , but again, I think the primary thing, , , is what do we want our reputation to be dur during all of this? And then how do we couch the communication, the messaging that we are delivering in response to this in order to reinforce that reputation and to avoid getting engaged in divisive political arguments, , which wouldn’t be beneficial for most organizations.

Neville Hobson: Yeah. , that, that’s sound advice. I think. And I would just simply add to that, that, , this applies wherever you are in the world. If you are in Europe or in Asia, it doesn’t make any difference that you would do this [00:17:00] as it relates to the relevance of your organization, the country you are in. , I think the other bit to, to mention is if you are working for a global company, whether it’s American or any other, , you could also, .

Perform a really valuable service to others by translating global approaches that affect your business on a global level into locally resonant narratives that apply in that particular country you are in. Or if you’re responsible for communication, a number of countries to tailor it to. To help you communicate effectively in those other countries too, and in the languages too.

So, , there may be different trade tensions in some of those other countries, which is likely to be the case. This is not all very uniform, , what we’ve been seeing about 10% of this and 60% of that. It may be, , different , in in particular countries, particularly smaller ones, but. The effects are likely to be resonating around the world, and some of the things that , are very hard to predict indeed is exactly what and where.

, so hence the, , the, that adds uncertainty [00:18:00] to , the broader uncertainty about what all that this means. So. Opportunity for communicators, I think is how I summarize all of that. Shell in un very uncertain times, this is a moment to shine, if you will. Even if what you are doing is not kind of like headline making.

It’s valuable to those you serve in the organization in terms of the intelligence you give them that enables them to confidently talk about these issues. So that’s what you need to pay attention to.

Shel Holtz: Absolutely. And listeners, we would love to know how you are handling all of this in your organizations, both within the US and outside the us.

, how are you counseling your leaders? What kinds of messages are you sending to employees? What kinds of teams have you assembled? , we would love to report on that. If you would rather we don’t mention your name or your organization. That’s fine. We don’t need to. Just the case studies would be, , an amazing follow up and that will be a 30.

For this episode of for immediate [00:19:00] release.

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