Talking Tariffs: How Companies Can Communicate Effectively in a No-Win Situation

As the Trump administration fights over the future of its tariffs in the courts, companies are anxiously considering how to deal with this massive shift in U.S. trade policy. Tariffs have already increased costs for many businesses, and they threaten the ability of some companies to survive. 

Walmart, Amazon, and Mattel are just a few companies that felt it necessary to speak publicly about tariffs, and each found themselves on the receiving end of threats from the Trump Administration. It’s enough to make any company think twice before making a public statement. The question we’re consistently asked is: What’s the right language and framing to talk about tariffs in a way that protects our business without antagonizing Washington?

Dangerous territory for companies

While most Americans oppose the current tariffs, many believe that current trade policies are unfair to America. By talking about how China is “taking advantage of us,” and celebrating “Liberation Day” by creating “reciprocal tariffs” that level the playing field, Trump seeks to “level the playing field” for Americans, President Trump has positioned himself as the defender of fairness. Tariffs are the means, but reestablishing fairness is the end. 

Companies are in a weak position to challenge any policy framed around “fairness.” Our recent research shows that American business is facing a crisis of trust. Just 29% of Americans trust companies to do the right thing all or most of the time. Just 35% think big business makes life better for the average person. And at the heart of it is a sense of unfairness. Americans overwhelmingly feel that companies do not play fair with customers, so it is hard for them to credibly attack any set of policies built on a promise of fairness. 

Flee, Fight, or Reframe?

With high stakes and significant risks, what are companies to do? It’s hard to imagine a message that perfectly threads the needle, but there are steps we can take to mitigate the risk.

• Don’t Say Nothing. Many companies have no choice but to say something. Public companies face disclosure requirements, and many small businesses face existential challenges that demand public advocacy. For others, there is still risk in staying silent. If you don’t frame the story but do raise prices, you risk having your story told for you by critics, customers, or policymakers. At a minimum, be prepared with a message. Better yet, start laying the groundwork now for a range of possible outcomes.
• Don’t Go Negative. Given the skepticism toward business, most big companies simply do not have enough trust to attack the policy without being criticized for protecting their profits. Small businesses can be much more vocal on this issue because it’s easy to understand how tariffs affect them. But big companies make themselves easy targets if they attack.
• Don’t Shift Blame. Most clients we work with want to talk about tariffs as if this is a rational, fact-based exercise: “If we just tell our customers what is happening and why, they will understand.” Unfortunately, most customers don’t want to be told what to think, and messages that focus on “educating customers” almost always come across as passing the buck.
• Don’t Make It About Tariffs Unless You Have To. For many companies, using the “T” word creates significant risk of attack from the administration. Companies may be able to mitigate this risk by focusing on “market conditions” or other factors that explain the need for price increases. People will connect the dots, but it will be harder for critics to use a corporate statement against you.
• Focus on the policy not the personalities. If, or when, you do focus on the impact of tariffs, make sure you stay focused on what is being done, not who is doing it. This rule has never been more important than it is today. 

Keys to Effective Framing

1. Lead With Empathy Before Education. Whether you frame the message around tariffs, market conditions, or something else, you need to get skeptical customers (or other stakeholders) to listen. To do that, you need to show you understand how they feel. “No one wants to see higher prices,” or “We know this is a challenging time…” Just a phrase or a sentence is enough, but it’s a critical foundation for building trust.

2. Identify Shared Goals. From a political perspective, one way to reduce (though not eliminate) risk is to state where you agree with the objectives of current trade policy. You can talk about “creating a strong economy for America and Americans,” “ensuring that other countries play by the same rules as we do,” or “protecting American jobs.” If you are bringing jobs or investments back to the U.S.—or just investing in the U.S.—this is a good time to mention it. Before you talk about the negative impacts of tariff policy, establish as much common ground as possible.

3. Be Solution-Oriented. In all the work we’ve done on explaining price increases, one consistent insight is that customers expect companies to try to avoid or reduce price increases before passing them along. That means it’s important to explain the actions you are taking before asking your customers to spend more. Don’t skip the things you do as standard operating procedures—customers don’t know what you do every day. Steps like finding different sources, identifying internal cost efficiencies, or accepting lower margins are all effective in building credibility.

4. Be Transparent About Potential Outcomes. After you’ve taken the steps above, you can talk about the need to increase prices. Here, you should anticipate what you might do before you do it. It’s better to say that you are working to avoid price increases, but they may become necessary, than to stay silent until you need to take the undesired action.

What Winning Looks Like

For companies like Amazon, Walmart, and Mattel, there may be no perfect statement. Walmart’s use of “as low as we can for as long as we can” is a great example of a solution-oriented message, even though it still generated a harsh response from President Trump. While not an ideal outcome, it may prove to be a positive result. Walmart stayed focused on its customer-focused message and its commitment to keep working. And the story, at least so far, has moved on to other targets.