Thoughts are with communications colleagues working to mitigate the impact of goods and services they promote suddenly becoming much more expensive in the world’s biggest economy.
Not least Jaguar Land Rover, which has paused shipments of its British-made vehicles to the United States for a month as it considers the implications of a 25% tariff on luxury motors manufactured in the UK.
The US is a key market for luxury automotive brands and the imposition of tariffs has far-reaching consequences. And, there will be other brands in a similar boat.
A 10% tariff is being added to nearly all UK goods, while the 25 per cent tariff also applies on US imports of steel, aluminium and derivative products.
Some businesses might sink without trace. Others may find opportunities that previously did not exist as some British goods become cheaper in comparison to those from countries with even higher tariffs.
What should a comms professional do?
Advocacy and lobbying
Outsiders cannot know whether it was the government or industry which hatched the plan to relax the UK’s 2030 electric car mandate, throwing a lifeline to car makers. Either way, now is the time for advocacy and lobbying that ensures decision-makers are clear on the issues your sector faces, and how they can show support.
Engage with stakeholders
Few, if any of us, are fully immune to the financial tsunami unleashed by Trump’s reciprocal tariffs. People will be worried about their jobs, pensions, families and future economic prospects. Now is the time to develop a clear strategic narrative and ensure it reaches every stakeholder that needs to hear it.
Prepare for a communications crisis
Unfortunately, some of what you will have to say will be quite unpalatable. Jobs may go, contracts may be cancelled, and investment shelved. And while your crisis communications planning may have been up to date when Donald Trump first came to power for his second term of office, it is highly likely to need a rethink. Now is the time to ensure that any preparations for crisis communication are reappraised. What would you say if a key media outlet were to call and ask about the impact of the Trump tariff? Be prepared.
Be transparent
Customers value frank, proactive communication, especially in times of uncertainty. Businesses may need to raise prices to offset increased costs triggered by tariffs. It is important to accentuate the value of products or services to justify the price increases. Be transparent about price increases, ensuring that your rationale is clear.
Media relations, monitoring and analysis
In a fast-moving world, it’s crucial that you know what’s going on and how to respond. Use media relations skills to your advantage, including press releases and statements that address the tariffs and position your organisation positively amidst the changes.
Get creative
Creative thinking will now be key, whether that be finding new routes to market or opportunities to sell products that do not require exposure to the United States. As natural quick thinkers and innovators, now is the time for PR people to push forward ideas.
Keep calm and carry on
Don’t forget that localisation is the new globalisation, a trend that started with Covid and shone a light on the true value of the modern communicator. While PR people need to be concerned about what happens globally, their real strength is in acknowledging the communication needs of the distinct audiences that they serve, whether that is a worried workforce, concerned investor or potential customer. There may be a new world order, but our audiences will always be much closer to heart and home.
INSIGHT
Written by
Simon Donohue, associate director and head of SEC Newgate’s Northern office in Manchester
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