Imagine starting your day with your usual avocado toast and realizing it’s suddenly 25% more expensive. A culinary inconvenience for some, perhaps, but this simple scenario highlights a complex issue: how international tariffs could disrupt industries, economies, and even your breakfast. We all know where avocados come from. With proposed tariffs on imports from Canada, Mexico, and China, Americans might feel the pinch in ways both expected and surprising.
Avocados and Automobiles: The Tariff Domino Effect
While the U.S. has proposed a 25% tariff on imports from Canada and Mexico, the ripple effects extend far beyond food prices. For example, Mexico supplies around 42.5% of the automotive parts imported into the United States as of early 2024. These parts often cross the U.S.-Mexico border multiple times before becoming a finished vehicle, meaning tariffs would disrupt supply chains and inflate costs.
The automotive sector could see production costs rise by up to $6,400 per $30,000 vehicle, according to industry estimates. Such an increase, inevitably passed down to consumers, underscores how interconnected supply chains amplify the consequences of tariffs.
What Happened in 2018: A Lesson from Canadian Steel
Canada provides another cautionary tale. After the U.S. imposed a 25% tariff on Canadian steel in 2018, exports to the U.S. plummeted by 38% in the first month alone. The move not only impacted Canadian businesses but also raised costs for American industries reliant on imported steel.
From steel to avocados, increased raw material costs drive inflation, a pattern expected to repeat should new tariffs be implemented.
The Consumer Perspective: Rising Costs Everywhere
Tariffs on key imports such as automotive parts, avocados, and steel would result in higher prices for everyday goods. For consumers, this means more than an extra dollar on their avocado toast; it means grappling with rising inflation in food, vehicles, and other essential commodities.
As businesses absorb higher import costs, these are passed to end consumers, perpetuating inflationary pressures in both the U.S. and trading partner nations.
PR and Communication Strategies in a Tariff-Heavy Climate
For businesses navigating the complexities of a tariff-heavy economic environment, clear and strategic communication is not just essential—it’s a competitive advantage. Automotive companies, in particular, face the challenge of explaining cost increases to consumers while maintaining the confidence of investors, employees, and suppliers. Here’s how best practices in media monitoring, stakeholder communication, and crisis management can help, drawing on Fullintel’s proven approach to blending human expertise and AI-driven technology.
Media Monitoring: The Power of Context and Speed
Staying ahead of tariff-related media coverage and consumer reactions is critical. Fullintel’s approach (and recommendation) emphasizes a hybrid model that leverages both human analysts and AI technology:
- Human Expertise for Context: Humans excel at providing nuanced, contextual insights from media coverage, offering deeper understanding and analysis of complex topics like tariffs and trade relations.
- AI for Speed and Scalability: Fullintel’s AI-powered tools, like the Fullintel Hub, rapidly sift through vast amounts of global media, identifying trends, themes, and sentiment at lightning speed. This dual approach ensures that businesses not only understand the coverage but can respond to it promptly and effectively.
By combining these strengths, businesses can identify and prioritize key narratives, whether from prominent media outlets like The New York Times or niche publications like Automotive Logistics Media.
Stakeholder Communication: Building Trust with Data
In an era of rising consumer and stakeholder expectations, proactive communication is essential. Fullintel recommends using media monitoring data—especially from social commentary—to craft tailored messages for key audiences:
- For Customers: Highlight how price changes are being managed responsibly and transparently. Use social sentiment analysis to address widespread concerns or misconceptions.
- For Suppliers: Share insights from trade-related media to align expectations and reinforce partnerships during supply chain adjustments.
The ability to analyze and synthesize social commentary ensures that businesses not only respond but lead the conversation, fostering trust across all stakeholder groups. For deeper insights on navigating this “balancing act,” PRWeek’s guide Understanding Your Stakeholders: The Great Balancing Act offers valuable perspectives on leveraging influence, interest, and impact to engage effectively with your audiences.
Crisis Management: AI Alerts for Real-Time Preparedness
Disruptions from tariffs can trigger crises, from supply chain bottlenecks to pricing backlash. Fullintel’s enhanced features like AI Alerts empower businesses to respond quickly and effectively:
- Predictive and Real-Time Alerts: AI Alerts notify businesses immediately about emerging issues, such as sudden shifts in media sentiment or breaking news related to tariffs.
- Scenario Planning: Insights from AI and curated human analysis enable businesses to anticipate potential disruptions and prepare contingency plans.
- Adaptive Strategies: Combining historical media data with predictive analytics helps PR teams refine their messaging and crisis management strategies dynamically.
By leveraging these tools, businesses can ensure they’re prepared to manage the fallout from sudden policy changes, demonstrating agility and commitment to stakeholders.
For additional guidelines on Crisis Communication and management, we also recommend The Institute for Public Relations’s guide for best practices.
Key Takeaways: Navigating Tariffs with PR Strategy
Effective communication in a tariff-heavy climate requires more than reactive messaging—it demands strategic foresight, a balanced use of technology and human expertise, and the ability to act decisively in real-time. With Fullintel’s unique blend of curated insights and AI-driven tools, businesses can confidently navigate these challenges, maintaining trust and protecting their reputations.
Because whether it’s managing supply chain disruptions or explaining why avocado toast suddenly costs 25% more, being prepared and proactive makes all the difference.
