Six Ways to Turn Tariff Challenges into Communication Opportunities: A Guide for Business Leaders
By Betsy Linaberger, executive vice president, crisis and reputation, Carmichael Lynch Relate
When the Trump administration announced plans for targeted tariffs on many of the country's biggest trading partners, it caused shockwaves across the U.S. and global financial markets. The tariff situation has created a lot of uncertainty, which makes transparency and education in communication with stakeholders critical. While most business leaders have chosen not to comment on the tariff situation, there is an opportunity for communicators to be proactive, take a more human approach, build trust with stakeholders and position their businesses for long-term success by responding in a pragmatic, non-partisan way that avoids rhetoric.
Focus on the long term
While addressing the immediate effects of tariffs are crucial, business leaders should clearly communicate their long-term strategy for managing the situation. How do they plan to mitigate the impact over time? Are they adjusting their supply chains or exploring new markets? Articulating the strategy demonstrates resilience and foresight, reassuring stakeholders that the disruption caused by tariffs is being handled with confidence.
Leverage the data
Since tariffs are a complex issue, businesses must rely on data when discussing their potential impact. Leaders should offer clear explanations of how tariffs will influence the business's bottom line and affect its employees, vendors, suppliers, customers, and communities.
Embrace two-way communication
While communicating transparently is essential, businesses should also ask for feedback. Leaders should provide forums where stakeholders can ask questions and express concerns. Being open to engaging core audiences will create a sense of community and allow leaders to address concerns proactively, making them feel heard. Leaders can also listen and capture stories that can be used in advocacy efforts.
Highlight opportunity
In addition to talking about challenges facing the business, leaders should also talk about solutions. Is the business absorbing some of the cost increases to prevent passing them on to consumers? Are they shifting production? Demonstrating that the business is actively taking steps to mitigate the negative impact can also reassure stakeholders.
Uphold transparency
Whenever possible, leaders should maintain transparency regarding the financial impact of tariffs on the business. Do they anticipate price increases? Are specific product lines more affected than others? By clearly communicating the financial situation, businesses can better manage expectations and prevent misinformation or confusion, especially among employees.
Monitor Sentiment
Finally, businesses should keep listening and monitoring sentiment among all audiences. The discussion about tariffs may change over time, so being attentive to shifts in public opinion will help leaders in adjusting their messaging and engagement methods with stakeholders.
By taking a human approach, focusing on stakeholders, and treating the tariff situation as a business opportunity rather than a political issue, leaders can demonstrate resilience and transparency and strengthen relationships with all stakeholders through ongoing communication.