NAVIGATING POTENTIAL U.S. TARIFFS – ARE COMPANIES READY?

By Earl Whipple, Senior Vice President

The recent U.S. imposition of 25% tariffs on imports from Canada and Mexico and 10% tariffs on imports from China will have significant business implications for multinational companies. These three countries make up about four in 10 of all U.S. imports. Just minutes ago, at 11:45 a.m. a deal was reached between Mexican President Sheinbaum and President Trump for a 30-day pause. Levies on Canada and China would still be effective on Tuesday, February 4th…that is how fast things are moving.

Canada and Mexico are the top buyers of U.S. exports in more than 72% of all export categories.

What kinds of consumer goods are we talking about here? Non-durable goods include spirits, vegetables, fruits and nuts, sugar, coffee, toys, leather, and clothing apparel, to name a few. Durable goods include automobiles, auto parts, farm equipment, furniture, iron and steel, semiconductors, lumber, oil and gas.

Urgent developments are on the horizon, with more tariffs expected to target Brazil and India. Retaliatory steps and market volatility have created economic uncertainty for our clients and their customers. To navigate this fast-moving period of uncertainty and volatility, we’re advising and supporting our clients on critical proactive strategies, which are crucial for maintaining stability and confidence in these challenging times.

1. Listen — Monitor media coverage related to tariffs and your industry in real time, and listen to what your customers say on social media. Being informed allows you to respond swiftly to misinformation and leverage positive narratives.

2. Engage — It’s crucial to proactively engage with industry associations and trade groups. This will keep you well-informed about policy developments and industry responses, and allow you to amplify your brand’s voice and visibility in advocacy efforts.

3. Communicate - Inform customers, investors, and employees about how the tariffs may affect operations. Transparency is key in fostering trust and helps manage expectations during uncertain times. Communicate any anticipated changes in pricing or product availability to customers promptly. Offering explanations and potential solutions can help maintain customer loyalty during adjustment periods.

4. Prepare — Review and refresh issues and communication plans that address various scenarios stemming from the tariffs. Being prepared ensures your company can respond effectively to rapid changes or negative developments, maintaining stakeholder confidence.

By implementing these public relations strategies, businesses can better navigate the complexities introduced by the new administration’s tariffs, maintaining resilience and stakeholder confidence in a shifting economic landscape.

In moments of uncertainty, you need a partner who can quickly assess the situation, develop a clear plan, and take decisive action. At FWV, we’re here to protect and enhance your reputation, turning challenges into opportunities for growth and resilience. If you or your business needs help, we’re here to safeguard what matters most.

Contact Earl Whipple (ewhipple@​fwv-​us.​com) to learn how we can help.