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

Research shows that much of the public, including many employees, are confused about the basics of tariffs. Therefore, businesses’ strategic communications about them must be transparent, proactive, pragmatic and proportional, say corporate and financial communications experts. 

Companies that choose to comment publicly about tariffs, such as those levied against Canada, Mexico and China this week—with those countries starting countermeasures of their own—have several options. For one, they can make public statements to prepare the market for higher prices, says Sean Cassidy, CEO of DKC. 

“Begin preparing the market for price increases,” Cassidy advises. “They should be open about it, but they should be as specific as they can when they can. [Companies] should be educating the market that [price increases are] likely, and then once they are in a position to define what that impact is going to be, they should be very specific about it.” 

One complication is the unpredictability of the Trump administration’s tariff strategy. Areas such as manufacturing, automakers, auto-parts suppliers and agriculture were expected to see the most acute direct effects from tariffs. However, on Tuesday, after two days of market declines, Commerce Secretary Howard Lutnick indicated the White House could change direction as soon as the next day. On Wednesday, president Donald Trump announced tariffs on some vehicles built in North America would be delayed by one month and reportedly weighed exemptions for some agricultural goods from Mexico and Canada.

The Trump White House, in its first term, was anything but shy about calling out companies that opposed its policies or ran afoul of it for other reasons. Organisations are aware they risk the ire of the Trump administration with any comments on tariffs. 

However, experts argue that an even greater risk is uncertainty. 

“The biggest risk that companies face is not knowing what may come next out of the administration,” says Eric Hazard, MD at Vested Communications, a financial services-focused agency.

Silence carries risks, adds Andrew Healy, cofounder and partner at Water & Wall.    

"Saying something is better than [saying] nothing,” he says. “Getting ahead of it versus waiting…that saying in general is a pretty good PR rule to stick by.”

Although it comes with the risk of retribution, communicating amid an uncertain environment on tariffs is also key for maintaining trust with stakeholders, says Julianna Sheridan, VP of crisis communications at Matter Communications. 

“Companies that focus and get those communications out this week or the following are working with expediency, [and they are] the ones that will really maintain the trust with their stakeholders,” Sheridan says. “Getting out ahead of any of the questions that might be on people's minds is critical because businesses are reviewing their vendors and their partner organisations that they're working with for long-term business forecasting and planning.” 

“We're in a very tight window of maintaining that trust with stakeholders by acting really clearly and transparently, and highlighting the adaptability of the organisation,” she says.

Many businesses struggle with who should be their primary messenger on political hot-potatos like tariffs. Corporate comms experts say messages on tariffs should be delivered regularly by C-suite executives, and earnings season gives them a unique opportunity to make a public statement. 

Earnings calls give companies the venue to prepare their messages, which they can put in their quarterly statements, Hazard says. “They're going to be answering those questions directly from analysts, so they control that message as well,” he says.

Healy agrees that earnings give executives an opportunity to address tariffs—but they shouldn't wait three months if a matter needs to be addressed urgently. 

“Earnings are a natural time for companies to talk about their forecast for the year and opportunities and challenges,” he says. “I don't think brands need to wait for earnings reports particularly if they just missed that cycle and the next one's not for another 65 days. It might be too long to get out there in front of your consumers.” 

The CEO or CFO is generally the best messenger, Healy adds. 

“The CEO is, of course, probably the best equipped one, particularly for publicly traded [companies],” he said. “At an analyst conference, maybe a CFO and something in the financial department might be a better fit.”

Hazard also advises companies to hold forums to answer internal questions. “There's going to be a lot of internal questions that come [up], so I'd encourage an executive to host a town hall,” he says.

Employees, investors, the stock market and the broader business community are just a few audiences that companies should communicate to about the effects of tariffs. Research shows there is a lot of confusion about tariffs among the general public. 

Seven in 10 respondents are highly concerned about inflation and higher prices as a result of tariffs, according to research from DKC Analytics. However, more than one-third of respondents could not identify a simple definition of a tariff when presented with multiple-choice options, and that percentage increased to 50% for Gen Z respondents, according to the report, A Business Leader’s Guide to Talking Tariffs. 

That lack of knowledge about tariffs is a “fundamental” challenge, says DKC CEO Sean Cassidy, who explains that companies cannot assume that employees or the general public understand tariffs because the topic has been in the news.

Instead, businesses should communicate with clarity to articulate the likely effects, Sheridan adds, specifically “what the tariff means for our business, and these are the specific ways that it's going to be impacting it, either positively or negatively.”  

“From there, [they can talk about] what are some of the things that they can expect,” she says. 

Sheridan advises clients to show timelines of price increases, cost and organisational restructurings to reduce the shock effects of tariffs.   

In terms of tone, clients should stay “neutral,” as tariffs “can be a divisive issue,” Sheridan says. “Step away from the policy side of things and really focus on the business impact.” 

Brands and companies without a reputation for social and political commentary should be deliberate when considering whether to join the conversation, she adds, noting that stakeholders largely want to know about tariffs’ dollars and cents impact. 

“We caution our clients to not dip their toes into the political realm, unless they have a historical position on entering those conversations,” Sheridan explained. “If you're a brand that's always had their voice out there in terms of policy and advocacy, then certainly it's worth considering in the strategy. Clients don't want to hear your perspective on the political landscape: They want to hear how this is going to impact their business.”