When the U.S. imposed 25% tariffs on Canadian goods, businesses across the country faced an immediate communications challenge: how to explain the impact to employees, reassure customers, satisfy investors, and maintain relationships with American partners—all while the ground shifted beneath them.
Some companies navigated this challenge effectively. Others stumbled badly. The difference often came down to preparation, messaging discipline, and understanding what each stakeholder group needed to hear.
The Stakes Are Higher Than You Think
The data on reputational fallout is sobering. According to crisis communications research, companies can lose up to 30% of share value due to poor crisis response. When executives say "no comment," 38% of the public assumes guilt. And in the age of social media, reputational damage can move faster than policy enforcement—42% of major brand crises tied to trade and sourcing issues were visible in public sentiment data before any internal alerts were triggered.
The Canadian Federation of Independent Business reports that 63% of small businesses face higher expenses from tariffs, while 53% have seen reduced profits. These aren't abstract policy debates. They're existential threats to businesses that employ millions of Canadians.
Lessons from Companies That Got It Right
Alouette Aluminum: The Market Pivot Story
When tariffs threatened Alouette's U.S.-dependent business model, the Quebec aluminum producer didn't just adapt—it communicated the adaptation effectively. In Q1 2025, the company exported the vast majority of production to the United States with only 4% going to Europe. By Q2, 57% of production was headed to European markets.
Foreign Affairs Minister Melanie Joly cited Alouette as proof that diversification "can happen, even in a very important sector such as aluminum." The company's messaging focused on adaptability and resilience rather than victimhood—a critical distinction.
Magna International: Measured Confidence
CEO Swamy Kotagiri demonstrated how to acknowledge challenges while projecting stability. His communications strategy included:
- Acknowledging tariffs were "adversely impacting" the industry without catastrophizing
- Comparing circumstances to previous crises (2008-09 downturn, pandemic chip shortage) to provide perspective
- Communicating specific mitigation metrics (75-80% USMCA compliant, working toward 100%)
- Stating a clear goal: "recover 100% of unmitigated tariff costs from customers"
The message was clear: this is serious, we have a plan, and we will execute.
Launchpad Co-Pack: Opportunity Framing
This Ontario beverage bottling company turned the crisis narrative on its head by positioning tariffs as a business opportunity. CEO Scott Morrison reported gaining Canadian customers who previously used U.S. facilities—and importantly, those customers confirmed that "production in Canada is now part of their long-term strategy."
The Communications Framework
Effective tariff communications follow a consistent structure across stakeholder groups.
For Employees: Clarity and Reassurance
Research shows a critical gap: 77% of leaders believe they give employees enough information, but only 46% of employees agree. During a tariff crisis, this gap becomes dangerous.
Best practices include:
- Create discussion guides for managers that go beyond talking points
- Make employees feel "seen in the messaging" rather than learning about their company from news reports
- Communicate the "why" behind decisions—employees value sincerity and authenticity
- Address job security concerns directly and honestly
For Customers: Partnership and Transparency
The most effective customer communications frame tariff challenges as a shared situation requiring partnership. According to Launch Team Inc., companies should:
- Notify customers proactively—no pricing surprises
- Explain which products are affected and why
- Respond to questions quickly and directly
- Communicate that you will follow the situation and keep them informed
Consider itemizing tariff surcharges separately on invoices or receipts. This transparency demonstrates that price increases reflect real costs rather than profit opportunism.
For Investors: Precision and Honesty
Nearly 90% of Fortune 500 Form 10-Q reports now mention tariff or trade concerns, up from approximately 45% in 2024. Investors expect detailed disclosure.
Effective investor communications should address:
- Exposure to current tariff regimes with specific percentages
- Mitigation strategies including supplier diversification and production adjustments
- Actual or expected impact on margins and competitiveness
- Effects on operations, liquidity, and capital resources
Critically, be comfortable saying "we don't know" when appropriate. The Corporate Counsel advises companies to ditch vague language like "closely monitoring" and "wait and see"—these phrases project uncertainty without providing value.
What to Avoid
Several communication failures have become cautionary tales.
Vague Monitoring Language
Statements like "we are closely monitoring the situation" satisfy no one. Stakeholders want to know what you're doing, not that you're watching.
Political Commentary
Tariffs are politically charged. Companies that take strong political positions risk alienating stakeholders on one side or the other. Focus on business impacts and responses, not policy debates.
Silence
Saying nothing is often interpreted as either incompetence or guilt. According to crisis communications research, silence during disruption damages credibility more than imperfect communication.
Relying on Government Intervention
Some companies have built assumptions about government intervention into their planning. This approach carries significant reputational risk. When Air Canada CEO Michael Rousseau admitted assuming government would intervene to prevent a strike, the admission backfired dramatically, interpreted as evidence of bad-faith bargaining.
Building Organizational Readiness
Companies that weather crises well share common characteristics.
Cross-Functional Teams
A Harvard Business Review analysis found that 67% of businesses that successfully navigated tariff increases had dedicated cross-functional teams where communications played a central role in strategic planning—not just in announcing price changes after the fact.
Pre-Approved Messaging
Develop frameworks in advance for different scenarios. The CAPS framework—Concern, Action, Plan, Support—provides a structure for rapid response that acknowledges the problem, describes immediate action, outlines the longer-term plan, and offers stakeholder support.
Bridging Techniques
Train spokespeople to navigate difficult questions. When asked to speculate on tariff impacts, respond with: "Instead of speculating, I can relay these facts..." This approach supports key points while maintaining credibility.
The Canadian Business Opportunity
Despite the challenges, Canadian businesses have proven resilient. Companies have recovered nearly $11 billion of the $18.5 billion in lost U.S. trade by tapping into 27 alternative trading partners. KPMG reports that 67% of Canadian businesses can weather a trade war lasting more than a year.
The companies that communicate effectively during this period will emerge with stronger stakeholder relationships and competitive advantages. Those that fumble communications will face compounding challenges as customers, employees, and investors lose confidence.
At SHIFT, we help businesses develop and execute communications strategies that protect reputation and maintain stakeholder trust during periods of uncertainty. The tariff situation has forced a new communications discipline on Canadian business—companies that master it will be better positioned for whatever challenges follow.