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On April 2, 2025, President Donald Trump announced a series of global tariffs aimed at addressing perceived trade imbalances and protecting American industries. These tariffs, which encompass a wide range of goods from various countries, were positioned as a means to reinforce domestic manufacturing and revive the U.S. economy.
However, the implementation of these tariffs has led to significant chaos in global supply chains, prompting concerns about rising costs for consumers and businesses alike. As stakeholders navigate the shifting trade landscape, the long-term implications of these tariffs continue to spark debate and analysis across multiple sectors.
The communications industry in particular is not exempt from potential threats as it braces for the knock on effect of these tariffs. For one, many agencies PRovoke Media spoke to highlighted concerns regarding the potential tightening of budgets. Others shared that there is now an increased demand for strategic expertise as well as a need for professionals to enhance their strategic engagement capabilities to maintain trust and loyalty amidst rising consumer prices and changing market dynamics.
An Era Of Uncertainty
"Sadly, we suspect that no agencies will be left unscathed by the tariffs and/or federal contracts. Uncertainty is never positive for the agency business, but strategic consulting is in high demand to help clients communicate with all of their stakeholders during this constantly evolving landscape," said Kim Sample, president of PR Council in New York.
"Many of our member firms are proactively analyzing their clients’ priorities in this environment and arming clients with very thoughtful proposed budget cut scenarios. This is a smart step since clients – especially those in federal government agencies – may be asked to make immediate budget cuts," she added.
Sample went on to say that with the environment being so chaotic, firms are looking at many different strategies to align their talent costs against declining revenue. "While some layoffs are happening and likely will continue to happen, firms are also deploying furloughs, reduced work hours and hiring freezes. It is a tough job market, but worth noting that some firms are hiring, especially summer interns," she said.
Saying that, according to Robin Chang, APAC general manager at W Communications, the impact might take a while to set in. "Across various industries, we will see brands and companies taking a more considered stance in making bold moves. Nevertheless, there are still appetites for content and creativity flex with brands looking for agencies to build longer-term PR programmes with fluid budgets," he said.
He also added that the industry might see uplifting opportunities as trading in other parts of the world will become more high-yielding. "The processes will take some time to pan out but communication professionals may have to rely on a mix of fractional talents with niche capabilities and their core team to deliver a more robust and efficient use of their budgets," he said.
Meanwhile, Michael Lasky, partner and chair of the Public Relations Law Practice at the New York City law firm of Davis+Gilbert, noted that the uncertainty may cause some brands and companies whose businesses are affected by the global supply chain and high tariffs to feel pressure on their profit margins. "That, in turn, may unfortunately cause some brands to suspend non-essential, and more discretionary “nice to have,” projects with their public relations and marketing communications firms," he said.
Evolving Your Communication Strategies
While the tariffs might spell doom for budgets and hiring, many agency heads agree that it does provide an interesting opportunity for PR professionals to enhance their strategic engagement capabilities to maintain trust and loyalty amidst rising consumer prices and changing market dynamics, emphasizing transparency and proactive communication.
"While some clients may tighten marketing budgets, they'll simultaneously increase demand for strategic communications expertise to navigate uncertainty. Companies will rely on PR partners to maintain stakeholder confidence, manage perception, and craft compelling narratives during this economic realignment," said Shouvik Prasanna Mukherjee, EVP global creative innovation, chief creative officer APAC of Golin.
He added that this economic shift will elevate strategic communications from a support function to a business-critical priority. Companies restructuring operations will require expertise across multiple disciplines, he said. These are namely, internal communications to maintain employee engagement amid uncertainty, public affairs guidance to navigate complex regulatory environments, investor relations to stabilise market confidence and brand communications to maintain consumer loyalty in an increasingly polarized marketplace.
"Economic pressure often separates strategic partners from tactical vendors. Agencies that position themselves as essential business advisors rather than just service providers will thrive during this period of change," said Mukherjee.
Agreeing with him, Edwin Yeo, general manager at SPRG, said that a lot will depend on how the market reacts in the next few weeks and months but that he sees a need for the industry to enhance its stakeholder engagement capabilities. "This would be a key area of focus to try to keep key stakeholders onside in the shifting macro economic landscape," he said.
He added that from a communications perspective, there also has to be new sensibilities. "Whatever was effective in communicating with Western stakeholders could now see a shift. There's a clear divide growing between the US and Europe, though that might change with time," said Yeo.
He added that while Trump's administrations couch tariffs as a good thing, the rest of Europe (and probably the world) do not. "This puts comms professionals in a bind. Arguing too aggressively against tariffs might land you in an uncomfortable space with US pro-Trump partners, but not doing so might put you in an awkward position with European partners," he said.
Yeo went on to say that historically, companies try to take as neutral a stance as possible, and align with global movements, such as ESG and DEI, but even those long held beliefs are now being challenged. "The growing polarisation makes factual communication that much harder and comms professionals need to become better and navigating these stormy waters," he advised.
Ultimately, the world will take some time to circumvent the new trading world order imposed by the United States, and while there will be short term pain, ultimately it is also true that markets will look for alternatives to keep businesses going, according to Jose Raymond, managing director of SW Strategies.
As a result, agencies can only wait and see while avoiding stagnation. They must be agile and sensitive to the needs of clients as things rapidly change and also be ready to pivot and adapt amidst these confusing times we are in.
However, the implementation of these tariffs has led to significant chaos in global supply chains, prompting concerns about rising costs for consumers and businesses alike. As stakeholders navigate the shifting trade landscape, the long-term implications of these tariffs continue to spark debate and analysis across multiple sectors.
The communications industry in particular is not exempt from potential threats as it braces for the knock on effect of these tariffs. For one, many agencies PRovoke Media spoke to highlighted concerns regarding the potential tightening of budgets. Others shared that there is now an increased demand for strategic expertise as well as a need for professionals to enhance their strategic engagement capabilities to maintain trust and loyalty amidst rising consumer prices and changing market dynamics.
An Era Of Uncertainty
"Many of our member firms are proactively analyzing their clients’ priorities in this environment and arming clients with very thoughtful proposed budget cut scenarios. This is a smart step since clients – especially those in federal government agencies – may be asked to make immediate budget cuts," she added.
Sample went on to say that with the environment being so chaotic, firms are looking at many different strategies to align their talent costs against declining revenue. "While some layoffs are happening and likely will continue to happen, firms are also deploying furloughs, reduced work hours and hiring freezes. It is a tough job market, but worth noting that some firms are hiring, especially summer interns," she said.
Saying that, according to Robin Chang, APAC general manager at W Communications, the impact might take a while to set in. "Across various industries, we will see brands and companies taking a more considered stance in making bold moves. Nevertheless, there are still appetites for content and creativity flex with brands looking for agencies to build longer-term PR programmes with fluid budgets," he said.
He also added that the industry might see uplifting opportunities as trading in other parts of the world will become more high-yielding. "The processes will take some time to pan out but communication professionals may have to rely on a mix of fractional talents with niche capabilities and their core team to deliver a more robust and efficient use of their budgets," he said.
Meanwhile, Michael Lasky, partner and chair of the Public Relations Law Practice at the New York City law firm of Davis+Gilbert, noted that the uncertainty may cause some brands and companies whose businesses are affected by the global supply chain and high tariffs to feel pressure on their profit margins. "That, in turn, may unfortunately cause some brands to suspend non-essential, and more discretionary “nice to have,” projects with their public relations and marketing communications firms," he said.
He added that furloughs and/or layoffs are more likely to occur at firms whose clients are in industries whose component parts are coming from high tariffed countries, such as China. "PR firms will necessarily be mindful of adjusting their staffing levels to be in alignment with anticipated revenue forecasts . Some staff reductions will be more likely if clients pull back or suspend significant projects," he said.
Lasky continued by saying that firms will need to prioritize flexibility in their workflows and hiring. Firms that have significant reductions in projects from their brands may seek to hire project-based employees, part-time employees, or independent contractors to more easily expand or contract the staff so staff costs are aligned with fluctuating revenues.
"I hope this is not collateral damage from the tariffs wars, but it is unfortunately quite possible. This is true for brands most severely affected by tariffs and in cases in which the additional cost of the tariff may be difficult to be passed on to the consumer due to competitive or other reasons," he added.
Lasky continued by saying that firms will need to prioritize flexibility in their workflows and hiring. Firms that have significant reductions in projects from their brands may seek to hire project-based employees, part-time employees, or independent contractors to more easily expand or contract the staff so staff costs are aligned with fluctuating revenues.
"I hope this is not collateral damage from the tariffs wars, but it is unfortunately quite possible. This is true for brands most severely affected by tariffs and in cases in which the additional cost of the tariff may be difficult to be passed on to the consumer due to competitive or other reasons," he added.
Evolving Your Communication Strategies
While the tariffs might spell doom for budgets and hiring, many agency heads agree that it does provide an interesting opportunity for PR professionals to enhance their strategic engagement capabilities to maintain trust and loyalty amidst rising consumer prices and changing market dynamics, emphasizing transparency and proactive communication.
"While some clients may tighten marketing budgets, they'll simultaneously increase demand for strategic communications expertise to navigate uncertainty. Companies will rely on PR partners to maintain stakeholder confidence, manage perception, and craft compelling narratives during this economic realignment," said Shouvik Prasanna Mukherjee, EVP global creative innovation, chief creative officer APAC of Golin.
He added that this economic shift will elevate strategic communications from a support function to a business-critical priority. Companies restructuring operations will require expertise across multiple disciplines, he said. These are namely, internal communications to maintain employee engagement amid uncertainty, public affairs guidance to navigate complex regulatory environments, investor relations to stabilise market confidence and brand communications to maintain consumer loyalty in an increasingly polarized marketplace.
"Economic pressure often separates strategic partners from tactical vendors. Agencies that position themselves as essential business advisors rather than just service providers will thrive during this period of change," said Mukherjee.
Agreeing with him, Edwin Yeo, general manager at SPRG, said that a lot will depend on how the market reacts in the next few weeks and months but that he sees a need for the industry to enhance its stakeholder engagement capabilities. "This would be a key area of focus to try to keep key stakeholders onside in the shifting macro economic landscape," he said.
He added that from a communications perspective, there also has to be new sensibilities. "Whatever was effective in communicating with Western stakeholders could now see a shift. There's a clear divide growing between the US and Europe, though that might change with time," said Yeo.
He added that while Trump's administrations couch tariffs as a good thing, the rest of Europe (and probably the world) do not. "This puts comms professionals in a bind. Arguing too aggressively against tariffs might land you in an uncomfortable space with US pro-Trump partners, but not doing so might put you in an awkward position with European partners," he said.
Yeo went on to say that historically, companies try to take as neutral a stance as possible, and align with global movements, such as ESG and DEI, but even those long held beliefs are now being challenged. "The growing polarisation makes factual communication that much harder and comms professionals need to become better and navigating these stormy waters," he advised.
Ultimately, the world will take some time to circumvent the new trading world order imposed by the United States, and while there will be short term pain, ultimately it is also true that markets will look for alternatives to keep businesses going, according to Jose Raymond, managing director of SW Strategies.
As a result, agencies can only wait and see while avoiding stagnation. They must be agile and sensitive to the needs of clients as things rapidly change and also be ready to pivot and adapt amidst these confusing times we are in.
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